Abstract
This chapter investigates the evolution of market integration among the countries that expressed their interest in the Belt and Road Initiative (BRI). A price convergence within the BRI is tested using individual goods retail price data for a panel of countries covered by the initiative. The tests provide no evidence of the price convergence for the majority of goods between 1990 and 2010. At the same time, China became relatively more integrated with the BRI partners over time, mainly due to the price convergence with Asian economies. The analysis reveals that a large share of price differences between China and its partners can be explained by high trade costs, which underlines the importance of the BRI for enhancing trade integration and price convergence.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
