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Can China’s belt and road investments improve the comprehensive international competitiveness of host countries?

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  • Dongyu Wang
  • Yong Qi
  • Song Wang

Abstract

Since China proposed the Belt and Road Initiative in 2013, the effect of driving economic development in host countries has intensified. This study examines the effect and spatial mechanisms of China’s Belt and Road investment on the comprehensive international competitiveness of 48 countries along the Belt and Road route in three dimensions: the basic requirements, efficiency enhancers, and economic freedom. The results revealed significant contributions and spatial spillover effects, whose spatial mechanisms can be implemented by upgrading the level of infrastructure development, optimizing the market environment, and enhancing the innovation capability. Therefore, it can be said that China’s Belt and Road investment can promote the development of the host country’s comprehensive international competitiveness from multiple perspectives. Moreover, research indicates that the infrastructure distance between the host country and China provides a broad space for Chinese investment, under whose effect Chinese investment contributes significantly and exhibits a positive spatial spillover effect, while market distance and innovation distance have the opposite effects.

Suggested Citation

  • Dongyu Wang & Yong Qi & Song Wang, 2024. "Can China’s belt and road investments improve the comprehensive international competitiveness of host countries?," Applied Economics, Taylor & Francis Journals, vol. 56(27), pages 3212-3231, June.
    • Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3212-3231
    DOI: 10.1080/00036846.2023.2206104
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