Abstract
With the slowdown of global economic growth, how to stimulate economic growth has become a hot topic in recent years. The “Belt and Road (B&R) Initiative,” as a newly proposed global economic stimulus plan, has attracted widespread attention from scholars. In this study, the research used the propensity score matching difference in difference (PSM-DID) method to evaluate whether the “B&R” Initiative has promoted the economic growth of the countries along the route. Objectively assessing the effect of its implementation is not only important for its completion and improvement in the future but also to verify whether the “B&R” Initiative promotes economic growth in participating countries. A logistic regression is constructed using the statistical data obtained by the World Bank on 110 countries from 2011 to 2016. The results show that the “B&R” Initiative has effectively promoted the rapid growth of the GDP of participating countries but the improvement of per capita GDP growth is not significant. Through the analysis of the selected variables, corresponding policy recommendations are proposed. Moreover, objective proofs are provided to encourage all the countries in the world to participate in the “B&R” Initiative.
Highlights
Owing to the slowdown of global economic growth in the early 21st century, countries are more frequently confronted with various challenges and risks
As a solution to dealing with the global crisis, the Belt and Road (B&R) Initiative proposed by China has been questioned by many countries: Does it truly promote the economic growth of the participating countries? In which areas is the promotion effect obvious and is it worthwhile generalizing it in the future? For which aspects are there shortages that need to be avoided for countries join the initiative in the future? On the occasion of the fifth anniversary of the “B&R” Initiative, the objective evaluation of the implementation of the “B&R” Initiative will improve the “B&R” Initiative and reduce the risks for countries joining after the promotion of the policy
A large number of studies have been conducted on the “B&R” Initiative, which can be roughly summarized into three levels: the political level, the regional economic level and the national level
Summary
Owing to the slowdown of global economic growth in the early 21st century, countries are more frequently confronted with various challenges and risks. The implementation of the policies has not achieved satisfactory results and has little impact on economic development [29]; (2) Due to the abundant energy resources and mineral resources in some participating countries of the “B&R” Initiative, it is easier for these countries to obtain rapid short-term economic growth and more financial revenue through fixed asset investment, infrastructure construction and energy mineral mining [30]. Economic growth in these countries is slow and leads to the “resource curse effect” [33,34]; and (3) The economic development of countries participating in the “B&R” Initiative is limited by difficult conditions and by the lack of a flexible environment Soft constraints such as education resources, scientific and technological innovation, physical problems and ideological ideas can limit the positive effects of capital and other inputs.
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