Does the Belt and Road Initiative upgrade the global value chain for BRI Countries：Revealing the substantial role of infrastructure

Abstract

With the resurgence of anti-globalization sentiment and trade protectionism, the development of the global value chain has encountered a bottleneck period. In response, China proposed the “Belt and Road Initiative” (BRI) in 2013, aiming to foster the formation of a mutually beneficial global value chain (GVC), with infrastructure construction being a key focus of cooperation. With the data from 65 economies within the OECD between 2010 and 2018, this article investigates the impact of the BRI on participating countries’ position in the global value chain (GVC), as well as explores the role played by infrastructure. The research findings indicate that: (1)The “Belt and Road Initiative” has the potential to boost the position of participating countries in the GVC; (2)Infrastructure plays a crucial role as a mediator in facilitating the mechanism through which the Belt and Road Initiative promotes the positioning of countries along the route in the global value chain; (3)The earliest participating countries, developing countries, and those with industries that are heavily reliant on infrastructure have observed significant advancements in their GVC position through collaborative efforts in infrastructure development. These findings provide convincing evidence for the achievements of the “Belt and Road” cooperation.