Further Evidence on China’s B&R Impact on Host Countries’ Quality of Institutions

H Yeung and Jürgen Huber
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Jürgen Huber: Department of Banking and Finance, University of Innsbruck, Universitätsstraße 15, 6020 Innsbruck, Austria

Sustainability, 2022, vol. 14, issue 9, 1-17

Abstract: As it has now been over eight years since the introduction of the Belt and Road initiative, analysts and scholars continue to debate the impact of the initiative on host countries. Recent academic studies reported a mostly positive relationship between China’s Belt and Road investments and host countries, including the governance of the latter. However, these studies mainly utilised data compiled by Chinese institutions, and questions have often been raised as to the quality of the data. This paper conceptually replicated one such investigation but utilised datasets compiled by non-China sources. The empirical methodology followed a novel sequential model selection approach, removing criticisms on the flexibility of generalised method of moments (GMM) panel estimations for researchers. Robust results were obtained: China’s Belt and Road investments had a significant positive impact on some measures of governance from the World Bank, and no significant negative effects were found.

Keywords: China; belt and road; foreign direct investment; quality of institutions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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