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Impacts of Cross-Country Infrastructure on Bilateral Trade: Evidence from New Silk Road Railways1

Author

Listed:
  • Ying-Min Kuo

    (Soochow University, Taipei Taiwan)

  • Mehtabul Azam

    (Oklahoma State University and IZA.)

Abstract

New Silk Road Railways have provided cross-continental rail freight services between China and Eurasian countries since 2011. We examine the impact of being connected to Silk Road railways on 20 destination countries' bilateral trade with China before the 2020 Pandemic. To address the issue of endogenous placement of railways, we utilize the generalized synthetic control method. We find that railway connections do not have significant impacts on either the gross import or gross export of destination countries. The results are robust to alternative methods, across product categories, and different grouping of destination countries based on whether they share a boundary with China.

Suggested Citation

  • Ying-Min Kuo & Mehtabul Azam, 2023. "Impacts of Cross-Country Infrastructure on Bilateral Trade: Evidence from New Silk Road Railways1," Journal of Economic Insight, Missouri Valley Economic Association, vol. 49(1), pages 13-36.
    • Handle: RePEc:mve:journl:v:49:y:2023:i:1:p:13-36
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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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