THE IMPACT OF BELT AND ROAD INITIATIVE ON THE ECONOMIC GROWTH OF MEMBER COUNTRIES IN ASIA
A SPILLOVER EFFECT ON ECONOMIC SECTORS
DOI:
https://doi.org/10.23925/2179-3565.2021v12i3p150-171%20Keywords:
Gross Domestic Growth, Belt and Road Initiative, Human Capital, Unemployment, AsiaAbstract
The study sought to answer the impact of the Belt and Road Initiative on the economic growth of Asian countries and how its growth affects various economic sectors of Asian countries. One of the significant contributions of this paper is that it highlights factors in Asian countries that account for the successful implementation of the Belt and Road initiative. The findings of this study are to serve as a guideline for firms, individuals, government, or any other entity willing to invest in Asian countries along the Belt and Road Initiative. Similarly, the study focused on identifying critical sectors of the host nation’s economy that are being impacted significantly by the Belt and Road initiative in Asia. The findings of the study are to serve as a guide to governments, corporate entities, and all stakeholders in Asia the most likely sectors of their economy likely to be impacted significantly by the Belt and Road Initiative. On economic growth it was realized that BRI from mainland China has a significant positive effect on the GDP growth rate of Asia. However, BRI showed no direct significant effect on the various economic sectors, previous year’s GDP growth rate has a significant positive effect on agriculture growth rate, manufacturing growth rate, services growth rate and external balance of trade growth rate indicating that there is a significant spillover from GDP growth rate as a result of BRI to other sectors of the economy.
References
BLALOCK, G., & GERTLER, P. J. How firm capabilities affect who benefits from foreign
technology. Journal of Development Economics, 90(2), 192-199. https://doi.org/10.1016/j.jdeveco.2008.11.011
CHIBBA, M. Contemporary perspectives on international business and culture. International Journal of
Business and Globalization, 14(4), 408-419, 2015.
DI TELLA, R., & SCHARGRODSKY, E. Do police reduce crime? Estimates using the allocation of
police forces after a terrorist attack. American Economic Review, 94(1), 115-133.
DUASA, J. Malaysian foreign direct investment and growth: does stability matter? Journal of Economic
Cooperation Among Islamic Countries, 28(2), 2008.
GALIANI, S., GERTLER, P., & SCHARGRODSKY, E. Water for life: The impact of the privatization of
water services on child mortality. In Journal of Political Economy,2007. https://doi.org/10.1086/426041
HERMES, N., & LENSINK, R. Foreign direct investment, financial development and economic
growth. The journal of development studies, 40(1), 142-163, 2003.
JIANG H. I, SUN Y-Q. China’s OFDI, host countries infrastructure construction, and bilateral
economic growth – from the perspective of “The belt and road” host country system. China Academic Journal
Electronic publishing house, 2018.
JIANG, X. B., & LIU, L. M. China’s direct investment efficiency toward the countries along the Belt and
Road. Journal of Global Economics, 6(1), 1-5, 2018.
JIANG, X. B., & LIU, L. M. China’s direct investment efficiency toward the countries along the Belt and
Road. Journal of Global Economics, 6(1), 1-5, 2018.
KALIAPPAN, S. R., KHAMIS, K. M., & ISMAIL, N. W. Determinants of Services FDI Inflows in
ASEAN Countries. International Journal of Economics & Management, 9(1), 2015.
MADDALA, G. S. & WU, S. A comparative study of unit root tests with panel data and a new simple
test. Oxford Bulletin of Economics and statistics, 61(S1), 631-652, 1999.
MALIK K. G., IMRAN, N. Impact of Foreign Direct Investment on Economic
Growth of Pakistan American Journal of Business and Management. Vol. 4, No. 4, 2015, 190-202 DOI:
11634/216796061504624
MARGEIRSSON, O. Foreign direct investment: A focused literature review. Binzagr Institute for
Sustainable Prosperity Working Paper, 104, 2015.
MEYER, B. D., VISCUSI, W. K., & DURBIN, D. L. Workers' compensation and injury duration:
evidence from a natural experiment. The American economic review, 322-340, 1995.
RAMASAMY, B., & YEUNG, M. The determinants of foreign direct investment in services. World
Economy, 33(4), 573-596, 2010.
SHAARI, M. S., HUSSAIN, N. E., & HALIM, M. S. B. A. The impact of foreign direct investment on the unemployment rate and economic growth in Malaysia. Journal of Applied Sciences Research, 8(9), 4900-
, 2012.
SUI G-J., HUANG L-X., HUANG X. China’s Foreign Direct Investment,
Infrastructure Construction and the “Belt and Road” National Economic Growth. China Academic Journal
Electronic publishing house, 2017.
TYTELL, I., & YUDAEVA, K. The role of FDI in Eastern Europe and New Independent States: new
channels for the spillover effect. Foreign direct investment in Europe: A changing landscape, 76., 2007.
VLADIMIR Y., The belt and road initiative a new model for global inclusive development and
Solidarity, 2019. Retrieved from https://doc-research.org/
VOON, J. P., & XU, X. Impact of the Belt and Road Initiative on China’s soft power: preliminary
evidence. Asia-Pacific Journal of Accounting & Economics, 27(1), 120-
, 2020. DOI: 10.1080/16081625.2020.1686841
YII, K. J., BEE, K. Y., CHEAM, W. Y., CHONG, Y. L., & LEE, C. M. Is transportation infrastructure
important to the One Belt One Road (OBOR) Initiative? Empirical evidence from the selected Asian
countries.
Downloads
Published
Versions
- 2021-11-02 (3)
- 2021-11-21 (2)
- 2021-11-02 (1)
Issue
Section
License
This Journal is licensed under a Creative Commons Attribution-Non Commercial-No Derivers 4.0 International license.
1.The author (s) authorize the publication of the article in the journal;
2.The author (s) warrant that the contribution is original and unpublished and is not in the process of being evaluated in other journal (s);
3. The journal is not responsible for the opinions, ideas and concepts emitted in the texts, as they are the sole responsibility of its author (s);
4. The editors are entitled to make textual adjustments and to adapt the articles to the standards of publication.
