Assessing Chinese–Egyptian bilateral trade dynamics under the One Belt One Road initiative: augmented gravity model approach

Shady Abozaied, Sara Elzarka and Islam Abdelbary

African Journal of Economic and Management Studies, 2025, vol. 17, issue 2, 163-178

Abstract: PurposeThis research paper investigates the economic impact of China’s One Belt, One Road (OBOR) initiative on its historical trade partner, Egypt, within a landscape shaped by global interconnectedness.Design/methodology/approachThe paper employs an augmented gravity model with a random-effects estimator and robust standard errors to analyze the impact of the OBOR initiative on China–Egypt bilateral trade from 1960 to 2022.FindingsThe findings reveal a significant increase in trade volume following the implementation of OBOR. The model confirms the continued importance of gross domestic product (GDP) and geographic proximity in facilitating trade. Additionally, the research highlights Egypt’s strategic positioning within the OBOR due to its location and existing infrastructure, such as the Suez Canal.Practical implicationsThese results offer valuable insights for policymakers and stakeholders seeking to optimize bilateral trade strategies and strengthen economic cooperation under the OBOR framework.Originality/valueThis study contributes to the existing literature by providing a fresh perspective on the impact of OBOR, employing a robust econometric approach and focusing on a specific yet crucial regional trade relationship.

Keywords: Bilateral trade; Augmented gravity model; One Belt; One Road; Policy development (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/ajems/article/17/2/163/124 ... tian-bilateral-trade (text/html)
https://www.emerald.com/ajems/article-pdf/17/2/163 ... s-06-2024-0347en.pdf (application/pdf)

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:eme:ajemsp:ajems-06-2024-0347

DOI: 10.1108/AJEMS-06-2024-0347

Access Statistics for this article

African Journal of Economic and Management Studies is currently edited by Prof John Kuada

More articles in African Journal of Economic and Management Studies from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().