Does the BRI contribute to poverty reduction in countries along the Belt and Road? A DID-based empirical test

Niyun Xie, Aili Chen, Xiaolin Wang () and Xiaoying Zhang ()
Additional contact information
Niyun Xie: Fudan University
Aili Chen: Fudan University
Xiaolin Wang: Fudan University
Xiaoying Zhang: Fudan University

Palgrave Communications, 2023, vol. 10, issue 1, 1-14

Abstract: Abstract Most countries along the Belt and Road are developing countries that face pronounced challenges due to poverty. The Chinese government has committed to implementing the Belt and Road Initiative (BRI) to establish a ‘Road to Poverty Reduction’. This study explores the impact of the BRI on poverty reduction in participating countries as well as the mechanisms underlying this impact. This research is of great significance to the continuing implementation of the BRI and global poverty governance. Based on a panel dataset extending from 2005 to 2019 and encompassing 151 countries, this article uses the difference-in-differences method to examine the Initiative’s impact and conducts heterogeneity analysis to explore the mechanism underlying this impact in further detail. This approach results in four findings. First, joining the BRI can significantly reduce poverty rates in these countries. Second, the policy effect exhibits a time lag. In the long term, the poverty reduction effect becomes more significant. Third, the BRI can significantly reduce poverty in countries neighbouring China and in lower-middle-income countries. The Land Silk Road Economic Belt and the 21st-Century Maritime Silk Road distinctly reduce poverty. Fourth, the BRI contributes to poverty reduction in BRI countries by facilitating trade, enhancing financial and credit systems, increasing China’s greenfield investment, and establishing digital infrastructure. Additionally, the BRI promotes poverty reduction through increased bilateral visits and technical cooperation, whereas knowledge sharing remains an area in need of further development. Through theoretical analysis and empirical tests, this article evaluates the policy effect of the BRI on poverty alleviation, tests the underlying mechanism, and responds to some concerns expressed by the international community. The findings of this article provide a feasible direction for improving the ability of the BRI to reduce poverty more effectively in the future and thus achieve the United Nations’ sustainable development goals (SDGs).

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1057/s41599-023-02365-8 Abstract (text/html)
Access to full text is restricted to subscribers.

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:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-02365-8

Ordering information: This journal article can be ordered from
https://www.nature.com/palcomms/about

DOI: 10.1057/s41599-023-02365-8

Access Statistics for this article

More articles in Palgrave Communications from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().