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Five Stylized facts on Belt and Road Countries and their Trade Patterns

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  • Kaku Attah Damoah,
  • Giorgia Giovannetti
  • Enrico Marvasi

Abstract

Since the start of the China-led Belt and Road Initiative, several countries became involved and some of them received investment projects. Using data for the period 2012-2018, we show that pre-existing trade patterns are related to the likelihood to participate in the initiative and receive investments. We summarize our findings into five stylized facts. First, BRI countries with completed projects tend to be poorer and larger. Second, projects are more likely to occur in countries with intensified intermediate trade with China. Third, countries that received projects have more diversified export structures and their sectoral specialization overlaps to that of China. Fourth, among middle-high income countries, projects tend to favor those with high levels of intra-industry trade. Fifth, among BRI countries with projects, the complexity or sophistication of goods trade increases faster with income. These findings suggest that the allocation of BRI investments partially reflects the trade patterns, favoring destinations with specific characteristics.

Suggested Citation

  • Kaku Attah Damoah, & Giorgia Giovannetti & Enrico Marvasi, 2021. "Five Stylized facts on Belt and Road Countries and their Trade Patterns," Working Papers - Economics wp2021_02.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  • Handle: RePEc:frz:wpaper:wp2021_02.rdf
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    Cited by:

    1. Ligang Song & Yixiao Zhou, 2023. "Guest Editors' Words," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(1), pages 1-4, January.

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    More about this item

    Keywords

    Belt and Road; China; global value chains; trade in intermediates; centrality; networks.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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