BRI Countries Research Articles

The usage of spatial econometric approach to explore the determinants of ecological footprint in BRI countries.

Protecting our environment is not a choice, but a responsibility we owe to future generations. Numerous studies examined the factors affecting the environmental deterioration but this research takes a step further by employing a spatial dependence model to evaluate spatial impact of ecological footprint and its contributing factors, particularly productive capacities which is hardly investigated in economic literature of BRI economies. For the purpose, the annual data of 54 BRI countries is analyzed for the time period from 2000 to 2018 by employing various econometric techniques. The outcomes of the Durbin model express that neighboring economies significantly affect the ecological footprint of an economy, highlighting the need for a regional policy framework to address environmental issues. It is also found that improving the productive capacities, green investment and democratic quality decrease the ecological footprint while per capita GDP, globalization, and development of financial sector increase the environmental deterioration. The significant interdependence of the countries within the region, a regional policy and vision must be implemented to safeguard the environment. The research findings can facilitate policy formulation aimed at promoting environmental sustainability, with particular focus on enhancing productive capacities and green investments.

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

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.

The effect of technological innovations, urbanization and economic growth on environmental quality: does governance matter?

Climate change has become a major challenge in recent decades as a result of rapid economic growth due to increased energy use and a rise in urbanization. Environmental damage induced by energy use, urbanization, and economic growth can be overcome by technological advancement and good governance. This study examines the effect of urbanization, technological innovations, and economic growth on carbon dioxide emissions in the Belt and Road initiative countries from 2002 to 2022. By using GMM model, the results show that, technological innovations and foreign direct investment raise carbon dioxide emissions however, research and development enhance environmental quality. This study also found that urbanization has a nonlinear relationship with carbon emission where effective governance exert a moderating role in this association. This study provides important policy suggestions for BRI countries.

How Financial Development and Regional Integration Promotes Inclusive Growth? Evidence from BRI Countries?

This research examines the role of financial development and regional integration to attain inclusive growth in selected BRI countries from 2000 to 2020. Existing studies for BRI focused on economic growth, infrastructure development and environmental sustainability. A few studies indicated pro-poor growth, but no empirical study was found regarding inclusive growth. Economic growth is inclusive in a sense to promote employment level, reduction in poverty and inequality along with increased accessibility and social security. To incorporate these factors, this study calculates a detailed inclusive growth index incorporating its four dimensions using principal component analysis (PCA) and applies Pooled OLS and two stages least squares (2SLS) to overcome the endogeneity problem. The results shows that FD, TO and FDI are significant in explaining inclusive growth in selected countries. Moreover, four pillars of inclusive growth are individually analyzed to attain clearer results. These findings indicate that regional integration along with FD, TO and FDI increases economic growth with employment level, reduces poverty and inequality and increases accessibility with social protection. Therefore, the study recommends that outward FDI flow from China towards BRI emerging countries is crucial for employment generation with reduced poverty and inequality and improves accessibility and social security. Domestically, Host countries must stabilize their economies politically, socially, and culturally to attain maximum gain from this FDI inflow for sustainability.

Is participation in global value chains a blessing or a curse for green total factor productivity in Belt and Road initiative countries?

With the continuous expansion of the "Belt and Road" (BRI), green total factor productivity (GTFP) has developed into consensus. Participation in Global value chains (GVCs) brings significant industrial and ecological benefits to BRI economies. By combining the multi-region input-output analyses with the panel regression model, the current paper examines the GVCs' influence on GTFP in 93 BRI countries during 2002–2018. Furthermore, the mediating effect model recognizes the impact mechanism of GVCs. The results showed that the GVCs position caused the GTFP to increase by 33%, as evidenced by the common correlated effects mean group (CEMG) estimator. Considering the GVCs’ participation modes heterogeneity, the increase in forward GVCs participation raises the GTFP by 20%, while the backward GVCs participation causes the GTFP to decrease by 17%. Considering the national heterogeneity, the GVC position increases GTFP in high-income, upper-middle-income, and lower-middle-income countries. Forward and backward participation have mixed results. Regarding the meditating effect model, the GVCs position and forward participation increase GTFP by increasing technology development and technical efficiency, while for backward participation, the effect is negative. BRI economies need to seek breakthroughs in GVC positions to attain the environmental governance function, enhance climate governance cooperation, and encourage synergy to promote green production.

How institutional quality, and energy production sources, affect the environmental sustainability of bri countries: A comparison of different income groups.

Institutions and energy production sources shape environmental policies and practices. Institutions establish frameworks for renewable energy and enforce environmental protection measures. Conventional energy sources cause pollution and climate change, while green energy sources have lower environmental impacts. In this study we analyzed how quality institutions, along with different types of energy production sources affect the quality of environment in 101 countries that are part of the BRI, a global development project. We used a statistical method called panel quantile regression to analyze data from 2000 to 2020. We found that producing energy from renewable sources, such as wind and solar, reduces CO2 emissions by 0.003% in BRI countries. However, producing energy from non-renewable sources, such as gas and coal, harms the environment more in high-income and middle-income countries. We also found that having better institutional quality reduces CO2 emissions by 3.421%, 2.710%, and 0.006% in different groups of BRI countries. This means that having stronger and fairer institutions can help protect the environment by limiting the use of non-renewable energy sources and encouraging the use of renewable ones. Our study suggests that improving institutional quality is a key factor for achieving green energy and environmental sustainability in BRI countries.

Governing the Extraterritorial: Global Environmentalities of China’s Green Belt and Road Initiative

This article proposes a global environmentality framework to critique efforts to “green” the Belt and Road Initiative (or Green BRI) by examining the Chinese state’s environmental governance of extraterritorial spaces. The article transcends a focus within governmentality studies on domestic processes to reveal the relations between governance techniques and environmental subjects, including state and nonstate actors, beyond sovereign borders. Drawing on interviews, observations, and analysis of policies and reports, we identify three ways in which global environmentalities operate and are negotiated through the Green BRI. First, the Chinese state is embracing international sustainable development criteria to gain global legitimacy while seeking to export its domestic environmental governance model, making the Green BRI a dialectic policy. Second, the state is targeting and disciplining BRI participants, including Chinese financial institutions, construction companies, the renewable industry, and foreign state actors in BRI countries. Third, Chinese and BRI partner country participants’ variegated subjectivities arise out of the negotiation of their own interests, Chinese state interests, and BRI host country concerns. Our analysis contributes to understanding of how China, as a rising power, engages in global environmental governance and produces extraterritorial environmental subjects.

Soft law and Chinese investment dispute resolution with BRI countries

The article delves into the utilization of soft law as an effective mechanism for resolving investment disputes within the context of China's ambitious Belt and Road Initiative (BRI). With the resurgence of global investment and the expansion of BRI projects, the potential for disputes in investments has escalated. This article highlights the limitations of traditional dispute resolution methods, such as international investment arbitration and international commercial arbitration, including enforcement difficulties, high costs, and protracted proceedings. In contrast, soft law emerges as a flexible and efficient approach to address these challenges. The concept and characteristics of soft law are thoroughly explored, emphasizing its role as an alternative to conventional legal instruments. Soft law encompasses principles, codes of conduct, and rules, providing a broader range of subjects and facilitating tailored solutions adaptable to local conditions. Its inherent flexibility significantly enhances the efficiency of conflict resolution, reducing contractual and negotiation costs associated with more rigid legal frameworks. The application of soft law within the Chinese context is examined, highlighting the proactive role of Chinese institutions in incorporating soft law mechanisms. For instance, the Export-Import Bank of China (EximBank) incorporates soft law in its loan application process by requiring compliance with relevant environmental policies and standards of both China and the host country. This approach helps fill legal loopholes, ensures environmental protection, and promotes efficient dispute resolution. The article further argues that mediation, as a soft law-based dispute resolution mechanism, holds particular promise for resolving investment disputes. Mediation fosters a cooperative and collaborative environment, encouraging dialogue and negotiation between parties. Its introduction as an alternative to arbitration reduces costs and expedites the resolution process. Leveraging China's cultural tradition and appreciation for mediation, it is suggested that soft law, particularly mediation, can offer novel and effective pathways to address investment disputes arising from the BRI. By embracing the advantages of soft law, a more efficient and convenient dispute resolution mechanism can be established. This not only promotes the successful implementation of BRI projects but also contributes to enhancing China's national reputation, fostering stable relationships with participating countries, and creating a favorable environment for overseas investments. It is essential to establish a robust dispute resolution framework to ensure the smooth operation of the BRI and address the increasing number of investment disputes that may arise along its path. In conclusion, this article advocates for the adoption of soft law, particularly mediation, as a viable and effective approach to resolve investment disputes within the BRI framework. By harnessing the flexibility and efficiency of soft law mechanisms, a conducive environment for investment dispute resolution can be created, benefiting all parties involved and facilitating the realization of the Belt and Road Initiative's overarching goals.

Correction to: The implications of forest resources depletion, agricultural expansion, and financial development on energy demand and ecological footprint in BRI countries

Correction to: The implications of forest resources depletion, agricultural expansion, and financial development on energy demand and ecological footprint in BRI countries

China’s Outward Foreign Direct Investment and the Environmental Performance of the “Belt and Road Initiative” Countries

Since the launch of the “Belt and Road Initiative” (BRI) in 2013, China’s outward foreign direct investment (OFDI) has grown rapidly. Moreover, the environmental protection issues introduced by these investment behaviors to BRI countries have attracted widespread attention from the international community. With the unbalanced panel data of 66 BRI countries from 2006 to 2020, this paper studied the impacts of China’s OFDI on the environmental performance of BRI countries from a systemic and partial perspective. We found that from a systemic perspective, China’s OFDI is conducive to the improvement of the comprehensive environmental performance of countries along the “Belt and Road”. From a partial perspective, the environmental performance influences of China’s OFDI in countries along the “Belt and Road” are threefold: (1) China’s OFDI can help mitigate climate change; (2) China’s OFDI improves wastewater treatment capacity; and (3) China’s OFDI has no significant impact on air quality. Therefore, China’s OFDI needs to continue its efforts to promote and improve the environmental performance of BRI countries to achieve their sustainable development goals. Some BRI developing countries should gradually change their extensive economic growth models; reduce their share of high energy-consuming, high-pollution, and inefficient industries in the national economy; and expand the proportion of their environmentally friendly industries while refraining from improving environmental performance by imposing high environmental pollution taxes.

The implications of forest resources depletion, agricultural expansion, and financial development on energy demand and ecological footprint in BRI countries

The implications of forest resources depletion, agricultural expansion, and financial development on energy demand and ecological footprint in BRI countries

The role of renewable energy investment and energy resource endowment in the evolution of carbon emission efficiency: spatial effect and the mediating effect.

With climate change caused by massive greenhouse gas emissions emerging as an issue of global concern, it is urgent to improve carbon emission efficiency (CEE) for countries along the Belt and Road (BRI). Considering the resource endowment characteristics of green development in BRI countries, the super-efficiency slacks-based measure (SBM) model is adopted to evaluate the current status and tendency of CEE in 60 BRI countries, while the Global Malmquist-Luenberger (GML) index to quantify the spatial and temporal variation and dynamic evolution of CEE. Subsequently, from the perspective of energy development and utilization, the spatial Durbin model (SDM) and the mediating effect model are employed to empirically examine the spillover effects and driving mechanisms of renewable energy investment and energy resource endowment on CEE. Empirical results reveal that (1) from a static perspective, the CEE of BRI countries is generally poor and unevenly distributed in terms of temporal and spatial dimensions, with significant room for enhancement. (2) Referring to the dynamic level, the GML index featured a U-shaped fluctuation, with technological progress contributing to the improvement of CEE. (3) There is a significant positive effect of renewable energy investment on CEE in the home country and neighboring countries, while energy resource endowment presents a remarkable adverse correlation. Consequently, it is suggested that inter-regional cooperation among BRI countries should be strengthened to reinforce renewable energy investment, exert the technology and knowledge spillover effect sufficiently, and break the resource curse in the environmental field. (4) The mediating effect model confirms the significant mediating mechanism of technological innovation. Renewable energy investment can enhance the CEE of BRI members by promoting the positive mediating effect of technological innovation, while energy resource endowment can inhibit the local level of technological innovation and indirectly inhibit the CEE of BRI members. The findings provide new ideas on the green development and ecological sustainability of the energy industry in BRI members and other economies.

The role of quality institutions and technological innovations in environmental sustainability: Panel data analysis of BRI countries.

The majority of countries struggle to accomplish sustainable development and environmental sustainability; nevertheless, environmental degradation issues can be resolved by enhancing technological innovations and institutional effectiveness. This study assesses the impact of technological innovations and institutional quality on carbon dioxide emission in the Belt and road initiative countries for the time period of 2002 to 2019. Fixed effect, OLS, and generalized method of moment estimators were applied to the panel data for analysis. The results shows that energy from fossil fuels, economic growth and technological innovations increase environmental degradation by rising carbon dioxide emission. Renewable energy consumption, the rule of law, and the quality of institutions make a significant contribution to the improvement of environmental quality. In particular, the Environmental Kuznets Curve and Innovation Claudia curve is valid in the Belt and Road Initiative countries. In the presence of quality institutions, countries can achieve sustainable growth and environmental sustainability by expanding their use of green technology and renewable energy. The findings provide suggestions to the sample countries on the improvement of institutional framework and technological innovations in order to achieve sustainable development.

Exploring the macro-market determinants of Chinese FDI in OBOR nations: considering the role of IFRS adoption

The study investigated how accounting quality, corporate governance, and financial market efficiency attract Chinese FDI (CFDI) in the context of IFRS adoption among forty-three BRI economies from 2007–2018. The generalized linear model estimates demonstrated that (i) IFRS adoption negatively affected CFDI; (ii) accounting information quality had an insignificant effect on CFDI; (iii) corporate governance and financial market efficiency had a significant positive role in attracting FDI. Further, the sample was divided into IFRS and non-IFRS BRI Countries. The results were highly robust in economies that practiced IFRS, whereas accounting information quality became significant and positive in economies with no-IFRS practices.

Digital populism in an authoritarian context: A discourse analysis of the legitimization of the Belt and Road Initiative by China’s party media

ABSTRACT This study examines how the Chinese government has adopted authoritarian digital populism to justify its political programs through its official social media sub-accounts. Through discourse analysis, we investigate textual material concerning the “Belt and Road Initiative” (BRI) posted on a representative WeChat account, Xiakedao. We find Xiakedao performing digital populism through stylistic-emotional manipulation to portray the benefits of the BRI to China, BRI countries, and the world, or, put succinctly, to legitimize the BRI. Specifically, in 2014–2016, through mixing informal and formal language, Xiakedao based its legitimization on stirring up a sense of hegemonic superiority by painting it as a strategy capable of significantly advancing China’s interests. Since 2017, Xiakedao has shifted to emphasizing its massive global contribution to stimulate nationalist pride and exploiting a trauma complex to bestow a counter-hegemonic aura on it. Drawing on Laclau and Mouffe’s discourse theory, we argue that Xiakedao has utilized the terms “China” and “BRI” as an empty signifier and a floating signifier, respectively. We unravel its discursive strategies of fixing their meanings and (re)drawing antagonistic frontiers to legitimize the BRI during different periods. The study contributes to theoretically understanding how an authoritarian state legitimizes the same political programs from disparate stances.

Impact of trade, technology, and tourism on resources depletion across Belt and Road Node countries

Trade, tourism, and technology significantly impact the environment, and maintaining a balance between resource conservation and economic growth has been one of the most difficult challenges in recent years. The curtailing of resource consumption is decisive for halting and reversing natural resource depletion and decarbonization. Therefore, there is a need to identify the factors that drive or reduce resource consumption. This study investigates the role of trade, technology, tourism, and economic growth in reducing/inhibiting resource depletion in selected Belt and Road Node (BRI) countries from 2003 to 2019. After confirming the data's cross-sectional dependency, slope heterogeneity, stationarity, and cointegration among variables, the study applied the “Cross-Sectionally Augmented Autoregressive Distributed Lag” (CS-ARDL) for the panel estimates. The study results suggested that trade, tourism, and economic growth increase the trade-adjusted material footprint (proxy of resource depletion) in the BRI countries, whereas technology upgradation limits resource depletion. Interestingly, technology development reduces the adverse effects of trade on the material footprint. Thus, integrating technology in trade and tourism is imperative to ensure long-term resource sustainability in the BRI region.

The spatial spillover effects of energy transition and trade openness on CO2 emissions

This study explores the spatial effects of energy transition and trade openness on CO2 emissions from 1990 to 2019 in 75 BRI countries. We use the spatial panel data models to address spatial dependency and the spillover impact between adjacent countries. First, the estimated findings support the occurrence of spatial autocorrelations in CO2 emissions across BRI countries. Second, we find that trade openness, natural gas consumption, and these variables' spatial effects positively affect CO2 emissions. Hence, renewable energy consumption and its spatial effect are negatively significant on CO2 emissions, while the GDP and its spatial effect are positive and negative, respectively. This study provides robust policy implications for promoting a green economy, CO2 reduction legislation, renewable energy, and the eventual replacement of natural gas.

Long-run Validity of Purchasing Power Parity between China and the post-Soviet BRI Countries

Long-run Validity of Purchasing Power Parity between China and the post-Soviet BRI Countries

Long-run Validity of Purchasing Power Parity between China and the post-Soviet BRI Countries

Long-run Validity of Purchasing Power Parity between China and the post-Soviet BRI Countries

What determines China’s energy OFDI: Economic, geographical, institutional, and cultural distance?

This paper aims to study the determinants of location choice of China's direct energy investment in BRI countries. It also attempts to analyze the impact of the Belt and Road Initiative on the effect of national distance. For this purpose, the gravity model is applied to the data over the period 2003–2017. The main results show that economic distance, geographical distance, and institutional distance hinder the location choice of China's OFDI in the energy sector, but the effect of cultural distance is uncertain. Second, the Belt and Road Initiative has increased China's direct energy investment in BRI countries but has not changed the influence of national distance on location choice significantly. Furthermore, renewable energy is attracting investment from Chinese firms in developed countries. Finally, the paper makes suggestions on strengthening the institutional quality of the host country, building energy pipelines, strengthening the cooperation of renewable energy, and enhancing the diversity of investment choices.