The Impact of Belt and Road Initiative on the Economic Growth of Member Countries in Asia: A Spillover Effect on Economic Sectors

Abstract

This article highlights the various factors that have contributed to the success of the Belt and Road Initiative (BRI) in various Asian countries. The findings of this study are to serve as guidelines for firms, individuals, governments, or any other entities willing to invest in Asian countries along the BRI. Similarly, the study identified critical sectors of the host nation’s economy that are impacted significantly by the BRI. On economic growth, BRI from mainland China has had a significant positive effect on the GDP growth rate of countries in Asia. The study also revealed that the human capital index and sharing a common language with mainland China has a significant positive effect on BRI in Asia. Furthermore, the previous year’s GDP growth rate of host countries has significant positive effects on various sectors of the economy—agriculture, manufacturing, trade and service. It indicates a significant spillover from the GDP growth rate resulting from BRI to other sectors of the economy.