IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v10y2020i1p2158244020902088.html
   My bibliography  Save this article

Has the Belt and Road Initiative Brought New Opportunities to Countries Along the Routes to Participate in Global Value Chains?

Author

Listed:
  • Zhiheng Wu
  • Guisheng Hou
  • Baogui Xin

Abstract

Using the data of 40 host countries during 2010 to 2017, we investigate whether the Belt and Road Initiative (BRI) has brought new opportunities to countries along the routes to participate in global value chains (GVCs). We employ a difference-in-differences (DID) method with propensity score matching (PSM) to solve the self-selection bias problem. The results indicate that BRI has a significant positive effect on promoting the countries along the routes to participate in GVCs, and the effect is lagging and fluctuant. Specifically, we find that the promotion effects are particularly significant in the second year of the BRI’s implementation. The heterogeneity analysis of Belt and Road (BR) countries shows that there remains a significant positive effect on developing BR countries as before, while the opposite is true for developed BR countries.

Suggested Citation

  • Zhiheng Wu & Guisheng Hou & Baogui Xin, 2020. "Has the Belt and Road Initiative Brought New Opportunities to Countries Along the Routes to Participate in Global Value Chains?," SAGE Open, , vol. 10(1), pages 21582440209, January.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:1:p:2158244020902088
    DOI: 10.1177/2158244020902088
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2158244020902088
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2158244020902088?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Unknown, 2012. "Transportation Research Forum," 53rd Annual Transportation Research Forum, Tampa, Florida, March 15-17, 2012 207218, Transportation Research Forum.
    2. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-494, February.
    3. Amendolagine, Vito & Presbitero, Andrea F. & Rabellotti, Roberta & Sanfilippo, Marco, 2019. "Local sourcing in developing countries: The role of foreign direct investments and global value chains," World Development, Elsevier, vol. 113(C), pages 73-88.
    4. Chhibber, Ajay, 2015. "China's One Belt One Road Strategy: The New Financial Institutions and India's Options," Working Papers 15/155, National Institute of Public Finance and Policy.
    5. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who produces for whom in the world economy?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(4), pages 1403-1437, November.
    6. Kevin C. Cheng & Gee Hee Hong & Dulani Seneviratne & Rachel van Elkan, 2016. "Rethinking the Exchange Rate Impact on Trade in a World with Global Value Chains," International Economic Journal, Taylor & Francis Journals, vol. 30(2), pages 204-216, June.
    7. Han, Lei & Han, Botang & Shi, Xunpeng & Su, Bin & Lv, Xin & Lei, Xiao, 2018. "Energy efficiency convergence across countries in the context of China’s Belt and Road initiative," Applied Energy, Elsevier, vol. 213(C), pages 112-122.
    8. Du, Julan & Zhang, Yifei, 2018. "Does One Belt One Road initiative promote Chinese overseas direct investment?," China Economic Review, Elsevier, vol. 47(C), pages 189-205.
    9. Bullón, David & Mena, Tayutic & Meng, Bo & Sánchez, Natalia & Vargas, Henry & Inomata, Satoshi, 2015. "Using the input-output approach to measure participation in GVCs : the case of Costa Rica," IDE Discussion Papers 529, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Xiu-Mei Fu & Han-Xue Chen & Zhen-Kai Xue, 2018. "Construction of the Belt and Road Trade Cooperation Network from the Multi-Distances Perspective," Sustainability, MDPI, vol. 10(5), pages 1-16, May.
    11. Tong, Yee-Siong, 2017. "Vertical specialisation or linkage development for agro-commodity value chain upgrading? The case of Malaysian palm oil," Land Use Policy, Elsevier, vol. 68(C), pages 585-596.
    12. Shi, Kaifang & Yu, Bailang & Huang, Chang & Wu, Jianping & Sun, Xiufeng, 2018. "Exploring spatiotemporal patterns of electric power consumption in countries along the Belt and Road," Energy, Elsevier, vol. 150(C), pages 847-859.
    13. Haiyue Liu & Jie Jiang & Lei Zhang & Xiaolan Chen, 2018. "OFDI Agglomeration and Chinese Firm Location Decisions under the “Belt and Road” Initiative," Sustainability, MDPI, vol. 10(11), pages 1-22, November.
    14. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    15. Mark Beeson, 2018. "Geoeconomics with Chinese characteristics: the BRI and China’s evolving grand strategy," Economic and Political Studies, Taylor & Francis Journals, vol. 6(3), pages 240-256, July.
    16. Giuseppe Gabusi, 2017. "“Crossing the River by Feeling the Gold”: The Asian Infrastructure Investment Bank and the Financial Support to the Belt and Road Initiative," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 25(5), pages 23-45, September.
    17. Jiahai Yuan & Yurong Zeng & Xiaoxuan Guo & Yu Ai & Minpeng Xiong, 2018. "Electric Power Investment Risk Assessment for Belt and Road Initiative Nations," Sustainability, MDPI, vol. 10(9), pages 1-21, August.
    18. Yuan, Jiahai & Li, Xinying & Xu, Chuanbo & Zhao, Changhong & Liu, Yuanxin, 2019. "Investment risk assessment of coal-fired power plants in countries along the Belt and Road initiative based on ANP-Entropy-TODIM method," Energy, Elsevier, vol. 176(C), pages 623-640.
    19. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    20. Gurgul, Henryk & Lach, Łukasz, 2018. "On using dynamic IO models with layers of techniques to measure value added in global value chains," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 155-170.
    21. Gianluca Orefice & Nadia Rocha, 2014. "Deep Integration and Production Networks: An Empirical Analysis," The World Economy, Wiley Blackwell, vol. 37(1), pages 106-136, January.
    22. Sarmiza Pencea, 2017. "A look into the Complexities of the One Belt, One Road Strategy," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 5(1), June.
    23. Lien, Donald & Oh, Chang Hoon & Selmier, W. Travis, 2012. "Confucius institute effects on China's trade and FDI: Isn't it delightful when folks afar study Hanyu?," International Review of Economics & Finance, Elsevier, vol. 21(1), pages 147-155.
    24. Paul Krugman, 1995. "Growing World Trade: Causes and Consequences," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 327-377.
    25. Yeats, Alexander J., 1998. "Just how big is global production sharing?," Policy Research Working Paper Series 1871, The World Bank.
    26. Fernando Ascensão & Lenore Fahrig & Anthony P. Clevenger & Richard T. Corlett & Jochen A. G. Jaeger & William F. Laurance & Henrique M. Pereira, 2018. "Environmental challenges for the Belt and Road Initiative," Nature Sustainability, Nature, vol. 1(5), pages 206-209, May.
    27. Cattaneo, O. & Gereffi, G. & Miroudot, S. & Taglioni, D., 2013. "Joining, upgrading and being competitive in global value chains : a strategic framework," Policy Research Working Paper Series 6406, The World Bank.
    28. Raphael Kaplinsky & Mike Morris, 2016. "Thinning and Thickening: Productive Sector Policies in The Era of Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(4), pages 625-645, September.
    29. Xu, Li-jun & Fan, Xiao-chao & Wang, Wei-qing & Xu, Lei & Duan, You-lian & Shi, Rui-jing, 2017. "Renewable and sustainable energy of Xinjiang and development strategy of node areas in the “Silk Road Economic Belt”," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 274-285.
    30. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    31. WANG, James Jixian & YAU, Selina, 2018. "Case studies on transport infrastructure projects in belt and road initiative: An actor network theory perspective," Journal of Transport Geography, Elsevier, vol. 71(C), pages 213-223.
    32. Yakov Silin & Larisa Kapustina & Italo Trevisan & Andrei Drevalev, 2018. "The silk road economic belt: balance of interests," Economic and Political Studies, Taylor & Francis Journals, vol. 6(3), pages 293-318, July.
    33. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    34. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Linda Calabrese & Rhys Jenkins & Lorena Lombardozzi, 2024. "The Belt and Road Initiative and Dynamics of Structural Transformation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 515-547, June.
    2. Hui Wang & Xin Zhong, 2023. "An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects," SAGE Open, , vol. 13(1), pages 21582440231, February.
    3. Shengbing He & Huilin Yao & Zhou Ji, 2021. "Direct and Indirect Effects of Business Environment on BRI Countries’ Global Value Chain Upgrading," IJERPH, MDPI, vol. 18(23), pages 1-16, November.
    4. Ghimire, Amogh & Ali, Sajjad & Long, Xingle & Chen, Lili & Sun, Jiayi, 2024. "Effect of Digital Silk Road and innovation heterogeneity on digital economy growth across 29 countries: New evidence from PSM-DID," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    5. Peizhu Xin & Min Zhao & Yang Bai, 2022. "Does the Belt and Road Initiative Promote Green Innovation Quality? Evidence from Chinese Cities," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    6. Sidong Zhao & Yiran Yan & Jing Han, 2021. "Industrial Land Change in Chinese Silk Road Cities and Its Influence on Environments," Land, MDPI, vol. 10(8), pages 1-30, July.
    7. Sha Fan, 2023. "Does the Belt and Road Initiative Promote Bilateral Trade? An Empirical Analysis of China and the Belt and Road Countries," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(2), pages 190-214, May.
    8. Xiao Wang & Jinming Shi & Jia Li & Yu Chen & Jianxu Liu & Songsak Sriboonchitta, 2023. "Analysis on Trade Competition and Complementarity of High-Quality Agricultural Products in Countries along the Belt and Road Initiative," Sustainability, MDPI, vol. 15(8), pages 1-34, April.
    9. Yang, Yiwen & Lin, Chinho, 2021. "Impact of the “Belt and Road Initiative” on machinery production networks," Economic Modelling, Elsevier, vol. 104(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    2. Hui Wang & Xin Zhong, 2023. "An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects," SAGE Open, , vol. 13(1), pages 21582440231, February.
    3. Laura Dell'Agostino, 2017. "Italy’S Participation In International Supply And Production Networks Using Value Added Trade Data," Departmental Working Papers of Economics - University 'Roma Tre' 0228, Department of Economics - University Roma Tre.
    4. Zhiheng Wu & Guisheng Hou & Baogui Xin, 2020. "The Causality between Participation in GVCs, Renewable Energy Consumption and CO 2 Emissions," Sustainability, MDPI, vol. 12(3), pages 1-26, February.
    5. Vrh, Nataša, 2015. "Pay-off to Participation in Global Value Chains: How Much are New EU Member States Lagging behind the Rest of EU Countries in Terms of Domestic Value Added in Exports?," MPRA Paper 67805, University Library of Munich, Germany.
    6. Ferraz, Lucas & Diniz, André & Thorstensen, Vera, 2017. "How the Reduction of Regulatory Barriers to Trade in Services may Affect the Architecture of Global Value Chains: the Case of TISA," Conference papers 332856, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Araújo, Inácio Fernandes de & Perobelli, Fernando Salgueiro & Faria, Weslem Rodrigues, 2021. "Regional and global patterns of participation in value chains: Evidence from Brazil," International Economics, Elsevier, vol. 165(C), pages 154-171.
    8. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    9. Marilia Marcato & Carolina Baltar & Fernando Sarti, 2019. "International competitiveness in a vertically fragmented production structure: empirical challenges and evidence," Economics Bulletin, AccessEcon, vol. 39(2), pages 876-893.
    10. Ferraz, Lucas & Ribeiro, Marcel B. & Monastério, Pedro, 2015. "Connecting to Global Value Chains: The Dynamic General Equilibrium Effects of a PTA between China and Mercosur over the economy of Brazil," Conference papers 332666, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Xu, Xueliu & Wang, Qian & Ran, Chenyang & Mu, Mingjie, 2021. "Is burden responsibility more effective? A value-added method for tracing worldwide carbon emissions," Ecological Economics, Elsevier, vol. 181(C).
    12. Thomas Farole, 2016. "Factory Southern Africa?," World Bank Publications - Reports 23787, The World Bank Group.
    13. Boya Zhang & Shukuan Bai & Yadong Ning & Tao Ding & Yan Zhang, 2020. "Emission Embodied in International Trade and Its Responsibility from the Perspective of Global Value Chain: Progress, Trends, and Challenges," Sustainability, MDPI, vol. 12(8), pages 1-26, April.
    14. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    15. Ilaria Fusacchia, 2020. "Evaluating the Impact of the US–China Trade War on Euro Area Economies: A Tale of Global Value Chains," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(3), pages 441-468, November.
    16. Colozza, Federico & Boschma, Ron & Morrison, Andrea & Pietrobelli, Carlo, 2021. "The importance of global value chains and regional capabilities for the economic complexity of EU-regions," MERIT Working Papers 2021-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    17. Baldwin, Richard & Freeman, Rebecca & Theodorakopoulos, Angelos, 2022. "Horses for courses: measuring foreign supply chain exposure," Bank of England working papers 996, Bank of England.
    18. Amador, João & Cabral, Sónia, 2014. "Global value chains: surveying drivers and measures," Working Paper Series 1739, European Central Bank.
    19. Benkovskis Konstantins & Wörz Julia, 2018. "“Made in China”: how does it affect our understanding of global market shares?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 18(2), pages 1-26, June.
    20. Konstantins Benkovskis & Julia Woerz, 2014. ""Made in China" - How Does it Affect Measures of Competitiveness?," Working Papers 2014/04, Latvijas Banka.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:10:y:2020:i:1:p:2158244020902088. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.