Impact of belt and road initiative oneconomic growth

Ai-Yee, Ooi and Nur Shahirah Azman and Andrew Tek Wei Saw and Kit-Yik, Teoh (2022) Impact of belt and road initiative oneconomic growth. Labuan Bulletin of International Business &Finance, 20. pp. 1-15.

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Abstract

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

Item Type:	Article
Keyword:	Belt and Road Initiative ; Economic growth ; Panel analysis ; Pre-and post-BRI.
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD72-88 Economic growth, development, planning H Social Sciences > HG Finance > HG1-9999 Finance > HG3810-4000 Foreign exchange. International finance. International monetary system
Department:	FACULTY > Labuan Faculty of International Finance
Depositing User:	ABDULLAH BIN SABUDIN -
Date Deposited:	04 Jul 2023 10:34
Last Modified:	04 Jul 2023 10:34
URI:	https://eprints.ums.edu.my/id/eprint/35763

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