Estimating production gains from international cooperation: Evidence from countries along the Belt and Road

Ning Zhu (), Xiang Dai (), Tomas Baležentis, Dalia Streimikiene () and Zhiyang Shen
Additional contact information
Ning Zhu: School of Economics and Finance, South China University of Technology
Xiang Dai: Nanjing Audit University
Dalia Streimikiene: Vilnius University

Economic Change and Restructuring, 2022, vol. 55, issue 2, No 7, 715-736

Abstract: Abstract The pros and cons of economic cooperation and integration have often been debated in the literature. Trade theory suggests that national economies could benefit from multilateral cooperation in international trade and investment owing to transnational division of labour, the mobility of production factors and technology diffusion. The Belt and Road Initiative (BRI) can help promoting economic cooperation and development among BRI countries. This paper embarks on analysis of the potential economic growth for selected BRI countries by investigating technical inefficiency and structural inefficiency. The latter measure assesses the potential gains in productivity due to economic collaboration. The scenario analysis identified China’s influence on pushing the production frontier and optimising resource allocation for the participating countries. The empirical results indicate that structural optimisation may result in higher productivity gains than reduction in technical inefficiency at the country level. Therefore, economic collaboration may facilitate appealing results for the BRI.

Keywords: Belt and Road Initiative; Structural efficiency; Economic cooperation; Aggregate production technology (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10644-021-09325-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:kap:ecopln:v:55:y:2022:i:2:d:10.1007_s10644-021-09325-9

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

DOI: 10.1007/s10644-021-09325-9

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().