Effects of the Belt and Road Initiative on the Domestic Economies of Participating Countries

Abstract

The effects of the BRI on the domestic economies of the participating countries are analysed, including the implications of intensified trade between China and East Asia, Southeast Asia, South Asia and Latin America. The implication of loan arrangements, which in many cases amount to an exchange of infrastructure for raw materials, has been described as well. Economic growth in many countries depends largely on China’s economic growth. However, it is argued that most of the countries require substantial diversification of their economies to establish and maintain sustainable economic growth and development, rather than just relying on specializing in the export of raw materials, otherwise a resource curse may occur when there are weak linkages between the resource sector and other sectors of the economy