Can the Belt and Road Initiative affect the “invisible” external wealth? The role of valuation effect

Wei Liu, Zhihui Zhao, Ganqiu Chen and Wenjing Du

Applied Economics Letters, 2025, vol. 32, issue 4, 546-552

Abstract: This paper examines the impact of the Belt and Road Initiative (BRI) on external wealth. Using the sample of 129 economies in 2002–2020, we find that the implementation of BRI has increased the external wealth of BRI economies denoted by the net foreign assets (NFA). Further, this positive impact of BRI is heterogeneous and mainly driven by the increasing valuation effect subpart rather than current account in NFA positions. We also empirically test two influencing mechanisms: exchange rate and asset price. Our findings provide insights into the external wealth improvement of nations.

Date: 2025
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DOI: 10.1080/13504851.2023.2276073

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