This study examines the potential effects of China’s ‘One-Belt One-Road’ initiative (OBOR) on trade flows and global value chain (GVC) connections. The empirical analysis is based on the augmented trade gravity model, which comprises 186 economies and 199 of their partners from 2000 to 2018. We also estimate the gravity model for involvement in GVC (domestic value added in intermediate exports, foreign value added in exports, and one country’s contributed value in another’s total exports). OBOR proves to be positively correlated with international trade and GVC, while some corridors seem to benefit more than others (e.g. China-Pakistan, China-Mongolia-Russian Federation, and Bangladesh-China-India-Myanmar).
Click here for more content.
UCLG-ASPAC Committee on the Belt and Road Local Cooperation
CONTACT US
Secretariat of UCLG-ASPAC Committee on the Belt and Road Local Cooperation
Floor 18, Building C, Civic Center, 18 East Jiefang Road, Jianggan District, Hangzhou
secretariat-brlc@hzfao.gov.cn
Zip code: 310026
工信部备案号：浙ICP备11041366号
杭州市人民政府外事办公室版权所有未经授权禁止复制或镜像
This study examines the potential effects of China’s ‘One-Belt One-Road’ initiative (OBOR) on trade flows and global value chain (GVC) connections. The empirical analysis is based on the augmented trade gravity model, which comprises 186 economies and 199 of their partners from 2000 to 2018. We also estimate the gravity model for involvement in GVC (domestic value added in intermediate exports, foreign value added in exports, and one country’s contributed value in another’s total exports). OBOR proves to be positively correlated with international trade and GVC, while some corridors seem to benefit more than others (e.g. China-Pakistan, China-Mongolia-Russian Federation, and Bangladesh-China-India-Myanmar).
Click here for more content.
