Assessing infrastructure and trade connectivity through network analysis evidence from BRI countries

Abstract

ABSTRACT The Belt and Road Initiative (BRI) is the world’s largest infrastructure investment that aims to improve economic integration and connectivity throughout Asia, Europe, and Africa. This paper investigates the influence of infrastructure development on trade connectivity in BRI countries. This paper employs network analysis to visualize and quantify the trade connectivity among BRI countries in 2013 and 2020 using the World Integrated Trade Solution (WITS) data. The study then empirically examines the impact of infrastructure development on trade connectivity from 1990 to 2020 for 76 BRI countries using a dynamic estimator. The dynamic model demonstrates how infrastructure investment can bolster trade connectivity. The results of the network analysis indicate that trade connectivity has significantly improved within BRI countries, in Asia and Europe while it lags behind in African and Central Asian regions.We suggest that that China should channel additional resources toward enhancing the connectivity of African and Central Asian nations.