Impact of the belt and road initiative on trade status and FDI attraction: A local and global network perspective

Shuai Lu, Ning Chen, Wei Zhou and Shouwei Li

International Review of Economics & Finance, 2024, vol. 89, issue PA, 1468-1495

Abstract: The Belt and Road Initiative (BRI) is attracting an increasing number of countries to join it for financial support and development opportunities. However, have the countries had higher trade status and been more attractive to foreign direct investment since joining the BRI? Have they cooperated more intensively with other countries? To answer the questions, based on two mixed network centrality measures, we utilize a difference-in-differences approach to examine the impact of the BRI on trade status and FDI attraction using a sample of 93 countries during 2008–2018 from a local and global network view. In multi-dimension characteristic and dynamic evolution analysis, we capture distinct network changes after the BRI. Our empirical results indicate a positive BRI effect on trade status and FDI attraction of BRI countries. From a local network view, we find the BRI effect on trade status requires a longer period, while the BRI effect on FDI attraction fades over time. We document a whole-period positive BRI effect on trade status and FDI attraction from a global network view. Moreover, the pioneering role and mediating effect of FDI attraction are identified. Last, we also find that the BRI alleviates the trade deficit and domestic capital flight.

Keywords: The belt and road initiative; Trade status; FDI attraction; Network dynamic evolution; Difference-in-differences (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056023003490
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:89:y:2024:i:pa:p:1468-1495

DOI: 10.1016/j.iref.2023.09.003

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().