Impact of belt and road initiative oneconomic growth
Belt and Road Initiative (BRI) has been proposed by president of China in 2013, as the purpose of boosting developments and trade activities in China, Asia, Europe, Middle East and Africa.The study focuses on examining the impacts of BRIstrategy towards the economic growth of 60 participated countri...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English English |
| Published: |
UMS
2022
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| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/35763/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/35763/2/FULL%20TEXT.pdf |
| Summary: | Belt and Road Initiative (BRI) has been proposed by president of China in 2013, as the purpose of boosting developments and trade activities in China, Asia, Europe, Middle East and Africa.The study focuses on examining the impacts of BRIstrategy towards the economic growth of 60 participated countries. Panel dataanalysisis usedto determine the relationshipof foreign direct investment, government expenditure, international trade, exchange rate and inflation rate with gross domestic production. We divide the sample intopre-and post-BRIcovering from 2008-2013 and 2014-2020 respectivelytobetter dissect theimpact of BRIon economic growth.Ourfindings show that the impact of foreign direct investment and exchange rate on economy growth are significant during the period of pre-BRIwhile after BRIforeign direct investment, exchange rate, government expenditure and inflation are found significantlyassociated with economic growth. The findings alsodemonstrate the expected sign of the relationship with theory; merely government expenditure shows unexpected negative sign. The study covers almost full sample ofparticipated countries lead to the highly reliable panel regression results. Thefinding perhaps can be the guideline to those countries who intend to be part of BRIin the future |
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