The Effect Of Institutional Quality On The Economic Growth Of Countries Along The Belt And Road Initiative From The Perspective Of Global Value Chain

The Vision and Action for Promoting the Co-construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road pointed out that economic cooperation and promotion are the focus of the "Belt and Road Initiative".Since General Secretary Xi Jinping proposed the "One Belt and One Road" initiative in 2013,the economic cooperation between countries along the "One Belt and One Road" has achieved a series of important progress.This article will present the overall institutional quality of a country and the country's political,economic and legal systems,as well as the interaction of institutional quality and the embeddedness of global value chains,from the perspective of a global value chain under the trade standard for intermediate products to countries along the "One Belt and One Road".Three Theoretical Hypotheses of Economic Growth Promotion Mechanism.Given the unpredictability of the informal system,this article focuses on the formal system that affects the economic development of a country.This article refers to the existing research of Lu Mingkong and other scholars,and divides the system quality into three sub-indexes:the quality of the political system,the quality of the economic system,and the quality of the legal system.In order to reduce the discrepancy and repetitiveness of measurement standards between different indices,this paper selects only global governance indicators and economic freedom index,adds simple summations,and seeks arithmetical averages to measure the quality of the system.In this paper,referring to the existing research of Yeats(2001),according to the classification of intermediate products classified by the BEC classification method in the UN Comtrade database,the ratio of the trade volume of intermediate products to the total trade volume is calculated as the global value of 44 countries along the“One Belt and One Road”line.A measure of the degree of embeddedness in the value chain.In order to verify the hypothesis,this paper constructs a panel data model,and uses Stata software to test the system quality under the division of labor in the global value chain from the direct effects,interaction effects and dynamic effects of static panels to the countries along the“One Belt and One Road".The role of economic growth.The empirical results show that the high system quality has a positive effect on the economic growth of countries along the“Belt and Road”initiative.The interaction of the overall system quality and its three sub-indicators and the embeddedness of the global value chain can also promote the countries along the "One Belt and One Road".Economic Growth.The natural resources of a country,the level of infrastructure,and the degree of openness to the outside world also contribute to the economic growth of countries along the Belt and Road.Based on the empirical findings,the paper also proposes corresponding policy recommendations:Countries along the "One Belt and One Roads"should continuously improve the system quality,continuously upgrade the status of the global value chain,and increase the degree of openness,infrastructure,and resource allocation efficiency.The interconnection between countries along the“Belt and Road”initiative will contribute to accelerating domestic economic development,promoting the economic development of countries along the "Belt and Road," and opening up a new path for economic development for developing countries.