Enhancing Total Factor Productivity: The Impact of the Belt and Road Initiative on Chinese Firms with a Focus on Fixed Asset Moderation

Jianeng Lu ()
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Jianeng Lu: Jiangsu University, School of Finance and Economics

A chapter in Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025), 2025, pp 316-328 from Springer

Abstract: Abstract This paper investigates the effects of the “Belt and Road” Initiative (BRI) on the Total Factor Productivity (TFP) of Chinese enterprises, with a focus on the moderating influence of enterprises’ fixed asset ratios. Grounded in Ownership-Location-Internalization Paradigm and Global Value Chain Upgrading Theory, this study employs the Difference-in-Differences (DID) methodology to empirically assess the initiative’s effect on the TFP of Chinese A-share listed companies over the period from 2011 to 2024. The findings indicate that the implementation of BRI has significantly enhanced the TFP of Chinese firms, particularly among non-state-owned and emerging enterprises. Furthermore, the fixed asset ratio serves as a positive moderating variable in the relationship between the BRI and TFP enhancement. A high fixed asset ratio enables enterprises to leverage more effectively the cross-border resource integration and technical cooperation opportunities afforded by the BRI. This paper contributes to the existing literature on the policy effect transmission mechanisms at the enterprise level and provides empirical evidence for policymakers and enterprises in strategic planning under the “Belt and Road” framework. It offers a novel perspective for comprehending the specific impact of the BRI on micro-level enterprises, highlighting the pivotal role of asset allocation in policy implementation.

Keywords: Belt and Road Initiative; Total Factor Productivity; Fixed Asset Ratio; Difference-in-Differences Model; Heterogeneity Analysis (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-888-2_32

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DOI: 10.2991/978-94-6463-888-2_32

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