Trade Effects Of The One Belt One Road Initiative

While there is an abundance of studies concerning the One Belt One Road Initiative,no empirical research has adopted the difference-in-difference method to investigate the impact of the program on the economies of different countries.This study,therefore,examines how the One Belt One Road Initiative affects the growth rate of export,import and net export of different countries.The study covers a total of 88 countries between the period from 2003 to 2016.Empirical model results indicate that the program has brought about a 10 per cent increase in export growth,4.9 per cent decrease in import growth,and a 1.2 per cent b increase in the growth rate of net export.The results are robust to the use of alternative pre-treatment periods.My results all point to the need for non-participants of the OBOR initiative to participate in the program.