IMPACT OF BELT AND ROAD INITIATIVE ON THE ECONOMIC GROWTH OF MEMBER COUNTRIES IN ASIA

Abstract

The study sought to answer the impact of the Belt and Road Initiative on the economic growth of Asian countries and how its growth affects various economic sectors of Asian countries. One of the significant contributions of this paper is that it highlights factors in Asian countries that account for the successful implementation of the Belt and Road initiative. The findings of this study are to serve as a guideline for firms, individuals, government, or any other entity willing to invest in Asian countries along the Belt and Road Initiative. Similarly, the study focused on identifying critical sectors of the host nation’s economy that are being impacted significantly by the Belt and Road initiative in Asia. The findings of the study are to serve as a guide to governments, corporate entities, and all stakeholders in Asia the most likely sectors of their economy likely to be impacted significantly by the Belt and Road Initiative. On economic growth it was realized that BRI from mainland China has a significant positive effect on the GDP growth rate of Asia. However, BRI showed no direct significant effect on the various economic sectors, previous year’s GDP growth rate has a significant positive effect on agriculture growth rate, manufacturing growth rate, services growth rate and external balance of trade growth rate indicating that there is a significant spillover from GDP growth rate as a result of BRI to other sectors of the economy.