Impact of Belt and Road Initiative on Asian Economies

Abstract

Chinese President Jinping initiated one of China’s grandiose foreign policy initiatives in 2013. He emphasized on the reconstruction of Silk Road Economic Belt and a twenty-first century Maritime Silk Road (MSR), together referred as Belt and Road Initiative (BRI). The BRI presents opportunity for trade, investment, and jobs between China and Asian economies that will support increasing consumption, infrastructure development, political associations, and sustainable development in many parts of the world. This article examines the BRI project and its growth, specifically from the Asian perspective. The study is an endeavor to identify the impact of BRI on the growth of Asian economies along the BRI route (corridors). For achieving this objective, data has been obtained from various websites and the time period considered is between 2009 and 2016. The panel data regression has been used with controllable macroeconomic variables. The results based on multiple models indicate a significant impact of BRI on the economic growth of Asian Economies. Other macroeconomic variables, such as imports, political stability, and corruption, also have a significant impact on the economic growth of the Asian economies.

Belt and Road Environmental Implications for South Asia

“…It will also create jobs and increase consumption; besides that, it will develop infrastructure and political association among China and partner countries. It will have a significant impact on the economic growth of Asian Economies along with other macroeconomic variables, such as imports, political stability, and corruption ( 14 ). No doubt it may bring dramatic changes to the life of unprivileged people, create opportunities for better health, develop educational services, and may improve social conditions, but such types of activities may also bring their challenges, such as sustainability, climate change, pollution, and other environmental implications [( 5 ), p. 3].…”

Accounting for the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic: application of hidden co-integration

“…Findings shows that there is a minimal financial development threshold level above which in African nations, the growth-enhancing effect of FDI is unlocked. Iqbal et al [ 23 ] added more spice to academic literature by investigating the impact of the Belt Road Initiative project on the growth of Asian economies. The far-reaching impact of the BRI outside the shores of Asia increases its relevance in the FDI-growth nexus amidst crisis discourse.…”

Impact of Belt Road Initiative on Indonesia‘s Oil and Gas Trade

“…The BRI project itself is at the centre of the policies given by President Xi Jinping who want to reconnect China to Central Asia, Europe and the Middle East and to strengthen China's dominance as an economic power by providing infrastructure program assistance across integration members. BRI targets Asia, Africa and Europe along 5 routes; the Chinese government focuses and takes advantage of international routes, important cities and major ports to strengthen relations and economic development (Iqbal, B.A., Rahman, M.N., & Sami, S, 2019).…”