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Has the Belt and Road Initiative improved the quality of economic growth in China's cities?

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  • Kong, Qunxi
  • Chen, Afei
  • Shen, Chenrong
  • Wong, Zoey

Abstract

Reform and opening up in China has produced high levels of economic growth but there have been problems concerning its quality. We investigate the effects of the Belt and Road Initiative (BRI) on the quality of urban economic growth using the difference-in-difference model with microdata of 285 prefecture-level cities in China from 2004-2018. We find this impact is positive and significant and occurs through three mechanisms: technological innovation, industrial structure upgrading and resource allocation optimization. Heterogeneity analysis shows significant differences in impact across city levels, spatial structures and location conditions. The effect of the BRI is most obvious in first- and second-tier cities and non-capital cities and is greater for cities with high sprawl and polycentric clusters. The quality of economic growth is most improved in Silk Belt pioneer area, followed by the open core area, strategic pivot and external-window area.

Suggested Citation

  • Kong, Qunxi & Chen, Afei & Shen, Chenrong & Wong, Zoey, 2021. "Has the Belt and Road Initiative improved the quality of economic growth in China's cities?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 870-883.
    • Handle: RePEc:eee:reveco:v:76:y:2021:i:c:p:870-883
    DOI: 10.1016/j.iref.2021.07.001
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    2. Kong, Qunxi & Li, Rongrong & Jiang, X. & Sun, Peibo & Peng, Dan, 2022. "Has transportation infrastructure development improved the quality of economic growth in China’s cities? A quasi-natural experiment based on the introduction of high-speed rail," Research in International Business and Finance, Elsevier, vol. 62(C).
    3. Wang, Fei & Dong, Zhi & Dong, Ji-chang, 2022. "Can international cooperation base for science and technology drive cooperation ability? Evidence from Xinjiang China," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 699-706.
    4. Fei Wang & Zhi Dong & Jichang Dong, 2023. "Assessment of the Drivers and Effects of International Science and Technology Cooperation in Xinjiang in the Context of the Belt and Road Initiative," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    5. Peng, Dan & Li, Rongrong & Shen, Chenrong & Wong, Zoey, 2022. "Industrial agglomeration, urban characteristics, and economic growth quality: The case of knowledge-intensive business services," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 18-28.
    6. Desheng Yu & Lihua Yang & Yuping Xu, 2022. "The Impact of the Digital Economy on High-Quality Development: An Analysis Based on the National Big Data Comprehensive Test Area," Sustainability, MDPI, vol. 14(21), pages 1-20, November.
    7. Kong, Qunxi & Wu, Peipei & Wang, Ziqi, 2024. "Outward foreign direct investment operation modes and reverse technology spillovers: Implications for the quality of economic growth," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1628-1639.
    8. Adekoya, Oluwasegun B. & Oliyide, Johnson A. & Kenku, Oluwademilade T. & Ajayi, Oluwafisayo F., 2023. "China's technological spillover effect on the energy efficiency of the BRI countries," Energy Policy, Elsevier, vol. 182(C).
    9. Hsu, Ching-Chi & Chien, FengSheng, 2022. "The study of co-movement risk in the context of the Belt and Road Initiative," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 1130-1152.
    10. Wang, Hui & Si, Ieongcheng & Chen, Zhihua, 2024. "Does the Belt and Road Initiative promote China and the countries along the route to reconstruct the global value chain? Evidence from value-added trade," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 63-83.

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