Export creation of the Belt and Road Initiative: “Give‐them‐a‐fish” or “Teach‐them‐to‐fish”?
Abstract The Belt and Road Initiative (BRI) initiated by China in 2013 is a new experiment in regional cooperation, which aims to improve infrastructure connectivity through investment. This paper investigates whether the BRI created exports for its member states (excluding China), based on a differ...
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| Format: | Article |
| Language: | English |
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Wiley
2022-12-01
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| Series: | International Studies of Economics |
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| Online Access: | https://doi.org/10.1002/ise3.5 |
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| author | Yu Chen Yan Zhang Lin Zhao |
| author_facet | Yu Chen Yan Zhang Lin Zhao |
| author_sort | Yu Chen |
| collection | DOAJ |
| description | Abstract The Belt and Road Initiative (BRI) initiated by China in 2013 is a new experiment in regional cooperation, which aims to improve infrastructure connectivity through investment. This paper investigates whether the BRI created exports for its member states (excluding China), based on a difference‐in‐differences model. We find a significant causal relationship between the signing of the initiative and the export growth of its member states. In addition to the large export creation between the BRI countries and China (considered as “give‐them‐a‐fish”), export creation also originated from the BRI countries excluding China (“teach‐them‐to‐fish”). Both the intensive and extensive margins are significantly important, indicating that export creation has not just come from expansion of the volume of existing products, but also from new products and new markets. The BRI achieved the goal of mutual benefit mainly through enlisting investment in both publicly funded infrastructure sectors and private sectors. Moreover, the initiative has enhanced the position and participation of its member states in the global value chain. |
| format | Article |
| id | doaj-art-7e259504b9ab4a678887248e95c4f427 |
| institution | Kabale University |
| issn | 2831-3224 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Wiley |
| record_format | Article |
| series | International Studies of Economics |
| spelling | doaj-art-7e259504b9ab4a678887248e95c4f4272025-02-06T11:40:42ZengWileyInternational Studies of Economics2831-32242022-12-0117453154910.1002/ise3.5Export creation of the Belt and Road Initiative: “Give‐them‐a‐fish” or “Teach‐them‐to‐fish”?Yu Chen0Yan Zhang1Lin Zhao2School of Economics Shanghai University of Finance and Economics Shanghai ChinaSchool of Economics Shanghai University of Finance and Economics Shanghai ChinaInstitute for Advanced Research Shanghai University of Finance and Economics Shanghai ChinaAbstract The Belt and Road Initiative (BRI) initiated by China in 2013 is a new experiment in regional cooperation, which aims to improve infrastructure connectivity through investment. This paper investigates whether the BRI created exports for its member states (excluding China), based on a difference‐in‐differences model. We find a significant causal relationship between the signing of the initiative and the export growth of its member states. In addition to the large export creation between the BRI countries and China (considered as “give‐them‐a‐fish”), export creation also originated from the BRI countries excluding China (“teach‐them‐to‐fish”). Both the intensive and extensive margins are significantly important, indicating that export creation has not just come from expansion of the volume of existing products, but also from new products and new markets. The BRI achieved the goal of mutual benefit mainly through enlisting investment in both publicly funded infrastructure sectors and private sectors. Moreover, the initiative has enhanced the position and participation of its member states in the global value chain.https://doi.org/10.1002/ise3.5Belt and Road Initiativeexport creationglobal value chaininfrastructure investmentprivate investment |
| spellingShingle | Yu Chen Yan Zhang Lin Zhao Export creation of the Belt and Road Initiative: “Give‐them‐a‐fish” or “Teach‐them‐to‐fish”? International Studies of Economics Belt and Road Initiative export creation global value chain infrastructure investment private investment |
| title | Export creation of the Belt and Road Initiative: “Give‐them‐a‐fish” or “Teach‐them‐to‐fish”? |
| title_full | Export creation of the Belt and Road Initiative: “Give‐them‐a‐fish” or “Teach‐them‐to‐fish”? |
| title_fullStr | Export creation of the Belt and Road Initiative: “Give‐them‐a‐fish” or “Teach‐them‐to‐fish”? |
| title_full_unstemmed | Export creation of the Belt and Road Initiative: “Give‐them‐a‐fish” or “Teach‐them‐to‐fish”? |
| title_short | Export creation of the Belt and Road Initiative: “Give‐them‐a‐fish” or “Teach‐them‐to‐fish”? |
| title_sort | export creation of the belt and road initiative give them a fish or teach them to fish |
| topic | Belt and Road Initiative export creation global value chain infrastructure investment private investment |
| url | https://doi.org/10.1002/ise3.5 |
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