Is Transportation Infrastructure Important to the One Belt One Road (OBOR) Initiative? Empirical Evidence from the Selected Asian Countries

Yii, Kwang‐Jing; Bee, Kai-Ying; Cheam, Wei-Yong; Chong, Yee-Lee; Lee, Ching-Mei

doi:10.3390/su10114131

Cited by 43 publications

(54 citation statements)

References 35 publications

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“…Given the vast geographical coverage and size of the economy, the B&R group of countries is an important new context in the world economy [36]. The B&R initiative, which seeks to improve the linkage between China and its neighboring countries [77], is one of the most important strategies for China's opening up in the current era of globalization. It is also a means to contribute to the sustainable development of countries involved [44].…”

Section: Discussionmentioning

confidence: 99%

Does China’s Outward Direct Investment Improve the Institutional Quality of the Belt and Road Countries?

et al. 2020

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This article investigates the effects of China’s outward direct investment (ODI) on the institutional quality of the Belt and Road (B&R) countries. Based on a panel data set of 63 B&R countries during the period 2003 to 2016, we find that China’s ODI improves the institutional quality of B&R countries not only in the short run but also in the long run. Further, although China’s ODI exerts no differential impacts on host country institutional dimensions of “control of corruption,” “government effectiveness,” and “political stability” in countries with different natural resource endowments, it improves their institutional dimensions of “regulatory quality” and “rule of law,” implying that China’s ODI may help the host B&R countries minimize the “resource curse”. As one of the most important strategies for China’s opening-up development in the current era, the B&R initiative serves as means to promote sustainable development of B&R countries. The article therefore contributes to existing scholarship on the institutional effects of China’s ODI and sheds light on the mechanisms that drive sustainable development.

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Section: Discussionmentioning

confidence: 99%

Does China’s Outward Direct Investment Improve the Institutional Quality of the Belt and Road Countries?

et al. 2020

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“…The new maritime silk road developed, connects China to the nations of Southeast Asia, the Gulf countries, Northern Africa and Europe. Aside from these links, six economic corridors through which trade is meant to be officially channeled [41,42]. The scope of this development is becoming more and more feasible thereby allowing for it to be interpreted and adopted both by international and regional organizations.…”

Section: The Concept Of Belt and Road Initiativementioning

confidence: 99%

Estimating China’s Trade with Its Partner Countries within the Belt and Road Initiative Using Neural Network Analysis

Dumor

Yao

2019

Sustainability

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The Belt and Road Initiative (BRI) under the auspices of the Chinese government was created as a regional integration and development model between China and her trade partners. Arguments have been raised as to whether this initiative will be beneficial to participating countries in the long run. We set to examine how to estimate this trade initiative by comparing the relative estimation powers of the traditional gravity model with the neural network analysis using detailed bilateral trade exports data from 1990 to 2017. The results show that neural networks are better than the gravity model approach in learning and clarifying international trade estimation. The neural networks with fixed country effects showed a more accurate estimation compared to a baseline model with country-year fixed effects, as in the OLS estimator and Poisson pseudo-maximum likelihood. On the other hand, the analysis indicated that more than 50% of the 6 participating East African countries in the BRI were able to attain their predicted targets. Kenya achieved an 80% (4 of 5) target. Drawing from the lessons of the BRI and the use of neural network model, it will serve as an important reference point by which other international trade interventions could be measured and compared.

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“…Chhetri et al [11] analyzed the key challenges of the BRI: underdeveloped infrastructure in Asia, road congestion, dilapidated infrastructure, incessant supply chain disruptions, and capacity constraint, which impose significant economic costs. Yii et al [12] pointed out that the crucial challenge encountered in the Belt and Road Initiative was the different track gauge standards in different countries. In the study, they examined the impact of the Belt and Road Initiative and its importance to economic growth by further investigating determinants such as transportation infrastructure and trade.…”

Section: Literature Reviewmentioning

confidence: 99%

China Railway Express Subsidy Model Based on Game Theory under “the Belt and Road” Initiative

et al. 2020

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China Railway Express (CR Express) is an emerging freight transport mode between China and Europe, which provides a new option in addition to air transport and ocean shipping. At the initial stage of development, due to the higher freight costs compared to ocean shipping, the government subsidy provided for the China Railway Express operator plays an important role in the process of market cultivation. The original intention of the government subsidy was to promote the rapid and sustainable development of China Railway Express and the further subsidy scheme should encourage China Railway Express operators to act towards the expected goal of the local government. This research is devoted to modeling and solving the problem of optimal subsidy amount in the operation of China Railway Express. Firstly, a subsidy model is established with the consideration of different objectives of local government and China Railway Express operator, which are affected by the operational effort level of the China Railway Express operator, actual freight rate and the highest freight rate that the shipper is willing to pay. Then, the validity of the proposed model is analyzed in the case study of the China Railway Express line (Wuhan-Hamburg). The effects of different subsidy amounts on the social benefits of local government and profits of the China Railway Express operator are analyzed and the sensitivity analysis is carried on the operational effort level of China Railway Express operator and the highest freight rate that shipper is willing to pay. The analysis results show that the optimal subsidy amount is between 2000 and 2500 USD per Forty-Foot Equivalent Unit (FEU). Finally, suggestions are proposed according to the analysis results. These findings can provide useful references for promoting the sustainable development of China Railway Express.

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Is Transportation Infrastructure Important to the One Belt One Road (OBOR) Initiative? Empirical Evidence from the Selected Asian Countries

Cited by 43 publications

References 35 publications

Does China’s Outward Direct Investment Improve the Institutional Quality of the Belt and Road Countries?

Does China’s Outward Direct Investment Improve the Institutional Quality of the Belt and Road Countries?

Estimating China’s Trade with Its Partner Countries within the Belt and Road Initiative Using Neural Network Analysis

China Railway Express Subsidy Model Based on Game Theory under “the Belt and Road” Initiative

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