IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v10y2023i1d10.1057_s41599-023-02365-8.html
   My bibliography  Save this article

Does the BRI contribute to poverty reduction in countries along the Belt and Road? A DID-based empirical test

Author

Listed:
  • Niyun Xie

    (Fudan University)

  • Aili Chen

    (Fudan University)

  • Xiaolin Wang

    (Fudan University)

  • Xiaoying Zhang

    (Fudan University)

Abstract

Most countries along the Belt and Road are developing countries that face pronounced challenges due to poverty. The Chinese government has committed to implementing the Belt and Road Initiative (BRI) to establish a ‘Road to Poverty Reduction’. This study explores the impact of the BRI on poverty reduction in participating countries as well as the mechanisms underlying this impact. This research is of great significance to the continuing implementation of the BRI and global poverty governance. Based on a panel dataset extending from 2005 to 2019 and encompassing 151 countries, this article uses the difference-in-differences method to examine the Initiative’s impact and conducts heterogeneity analysis to explore the mechanism underlying this impact in further detail. This approach results in four findings. First, joining the BRI can significantly reduce poverty rates in these countries. Second, the policy effect exhibits a time lag. In the long term, the poverty reduction effect becomes more significant. Third, the BRI can significantly reduce poverty in countries neighbouring China and in lower-middle-income countries. The Land Silk Road Economic Belt and the 21st-Century Maritime Silk Road distinctly reduce poverty. Fourth, the BRI contributes to poverty reduction in BRI countries by facilitating trade, enhancing financial and credit systems, increasing China’s greenfield investment, and establishing digital infrastructure. Additionally, the BRI promotes poverty reduction through increased bilateral visits and technical cooperation, whereas knowledge sharing remains an area in need of further development. Through theoretical analysis and empirical tests, this article evaluates the policy effect of the BRI on poverty alleviation, tests the underlying mechanism, and responds to some concerns expressed by the international community. The findings of this article provide a feasible direction for improving the ability of the BRI to reduce poverty more effectively in the future and thus achieve the United Nations’ sustainable development goals (SDGs).

Suggested Citation

  • Niyun Xie & Aili Chen & Xiaolin Wang & Xiaoying Zhang, 2023. "Does the BRI contribute to poverty reduction in countries along the Belt and Road? A DID-based empirical test," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
  • Handle: RePEc:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-02365-8
    DOI: 10.1057/s41599-023-02365-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-023-02365-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41599-023-02365-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bertinelli, Luisito & Black, Duncan, 2004. "Urbanization and growth," Journal of Urban Economics, Elsevier, vol. 56(1), pages 80-96, July.
    2. Pierre-Richard Agénor, 2004. "Does globalization hurt the poor?," International Economics and Economic Policy, Springer, vol. 1(1), pages 21-51, March.
    3. Du, Julan & Zhang, Yifei, 2018. "Does One Belt One Road initiative promote Chinese overseas direct investment?," China Economic Review, Elsevier, vol. 47(C), pages 189-205.
    4. Abbott Ferriss, 2006. "Social Structure and Child Poverty," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 78(3), pages 453-472, September.
    5. Stijns, Jean-Philippe, 2006. "Natural resource abundance and human capital accumulation," World Development, Elsevier, vol. 34(6), pages 1060-1083, June.
    6. Arndt, Channing & Distante, Roberta & Hussain, M. Azhar & Østerdal, Lars Peter & Huong, Pham Lan & Ibraimo, Maimuna, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," World Development, Elsevier, vol. 40(11), pages 2290-2301.
    7. Arndt, Channing & Distante, Roberta & Hussain, M. Azhar & Østerdal, Lars Peter & Huong, Pham Lan & Ibraimo, Maimuna, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," World Development, Elsevier, vol. 40(11), pages 2290-2301.
    8. Carlino, Gerald A. & Chatterjee, Satyajit & Hunt, Robert M., 2007. "Urban density and the rate of invention," Journal of Urban Economics, Elsevier, vol. 61(3), pages 389-419, May.
    9. Koizumi, Tetsunori & Kopecky, Kenneth J., 1980. "Foreign direct investment, technology transfer and domestic employment effects," Journal of International Economics, Elsevier, vol. 10(1), pages 1-20, February.
    10. Khalifa Ghali & Al-Mutawa Ahmed, 1999. "The Intertemporal Causal Dynamics Between Fixed Capital Formation and Economic Growth in The Group-Of-Seven Countries," International Economic Journal, Taylor & Francis Journals, vol. 13(2), pages 31-37.
    11. Edinaldo Tebaldi & Ramesh Mohan, 2010. "Institutions and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1047-1066.
    12. Alexandre KOLEV, 2005. "Unemployment, job quality and poverty: A case study of Bulgaria," International Labour Review, International Labour Organization, vol. 144(1), pages 85-114, March.
    13. repec:unu:wpaper:wp2012-36 is not listed on IDEAS
    14. Enrico Fardella & Giorgio Prodi, 2017. "The Belt and Road Initiative Impact on Europe: An Italian Perspective," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 25(5), pages 125-138, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yue Wu & Dong-Shang Chang, 2024. "Decomposing the comprehensive efficiency of major cities into divisions on governance, ICT and sustainability: network slack-based measure model," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Channing Arndt & Azhar M. Hussain & Vincenzo Salvucci & Finn Tarp & Lars Peter Østerdal, 2016. "Poverty Mapping Based on First‐Order Dominance with an Example from Mozambique," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(1), pages 3-21, January.
    2. Udaya S. Mishra & Vachaspati Shukla, 2015. "Welfare Comparisons with Multidimensional Well-Being Indicators: An Indian Illustration," Working Papers id:7095, eSocialSciences.
    3. M. Azhar Hussain & Nikolaj Siersbæk & Lars Peter Østerdal, 2020. "Multidimensional welfare comparisons of EU member states before, during, and after the financial crisis: a dominance approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 645-686, December.
    4. Kristi Mahrt & Malokele Nanivazo, 2015. "Estimating multidimensional childhood poverty in the Democratic Republic of Congo, 2007 through 2013," WIDER Working Paper Series 131, World Institute for Development Economic Research (UNU-WIDER).
    5. Channing Arndt & Azhar M. Hussain & Vincenzo Salvucci & Finn Tarp & Lars Peter Østerdal, 2016. "Poverty Mapping Based on First‐Order Dominance with an Example from Mozambique," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(1), pages 3-21, January.
    6. Arndt, Channing & Mahrt, Kristi & Hussain, M. Azhar & Tarp, Finn, 2018. "A human rights-consistent approach to multidimensional welfare measurement applied to sub-Saharan Africa," World Development, Elsevier, vol. 108(C), pages 181-196.
    7. Vidya Diwakar & Amanda Lenhardt & Emmanuel Tumusiime & Joseph Simbaya & Arthur Moonga, 2023. "The Relationship Between Psychosocial Interventions and Child Wellbeing in Zambia," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 16(1), pages 395-420, February.
    8. Koffi Dumor & Li Yao, 2019. "Estimating China’s Trade with Its Partner Countries within the Belt and Road Initiative Using Neural Network Analysis," Sustainability, MDPI, vol. 11(5), pages 1-22, March.
    9. Kristi Mahrt & Gibson Masumbu, 2015. "Estimating multidimensional poverty in Zambia," WIDER Working Paper Series wp-2015-137, World Institute for Development Economic Research (UNU-WIDER).
    10. M. Azhar Hussain & Mette Møller Jørgensen & Lars Peter Østerdal, 2016. "Refining Population Health Comparisons: A Multidimensional First Order Dominance Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 739-759, November.
    11. Malokele Nanivazo, 2015. "First Order Dominance Analysis: Child Wellbeing in the Democratic Republic of Congo," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(1), pages 235-255, May.
    12. Eva-Maria Egger & Vincenzo Salvucci & Finn Tarp, 2023. "Evolution of Multidimensional Poverty in Crisis-Ridden Mozambique," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(3), pages 485-519, April.
    13. Olu Ajakaiye & Afeikhena T. Jerome & Olanrewaju Olaniyan & Kristi Mahrt & Olufunke A. Alaba, 2014. "Multidimensional Poverty in Nigeria: First Order Dominance Approach," WIDER Working Paper Series wp-2014-143, World Institute for Development Economic Research (UNU-WIDER).
    14. T. El Sayed & A. R. Zahran, 2020. "Child Wellbeing in Egypt: a Weighted Multidimensional Almost Dominance Approach," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 13(3), pages 993-1022, June.
    15. Ajakaiye, Olu & Jerome, Afeikhena T. & Olaniyan, Olanrewaju & Mahrt, Kristi & Alaba, Olufunke A., 2014. "Multidimensional poverty in Nigeria: First order dominance approach," WIDER Working Paper Series 143, World Institute for Development Economic Research (UNU-WIDER).
    16. Martyna Kobus & Radoslaw Kurek, 2017. "Copula-based measurement of interdependence for discrete distributions," Working Papers 431, ECINEQ, Society for the Study of Economic Inequality.
    17. Udaya S. Mishra & Vachaspati Shukla, 2016. "Welfare Comparisons with Multidimensional Well-Being Indicators: An Indian Illustration," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 505-525, November.
    18. Marco Fattore & Alberto Arcagni, 2019. "F-FOD: Fuzzy First Order Dominance Analysis and Populations Ranking Over Ordinal Multi-Indicator Systems," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 1-29, July.
    19. Fatiha Bennia & Nicolas Gravel, 2016. "Is the Distribution of Cardiovascular Risks Really Improving? A Robust Analysis for France," AMSE Working Papers 1619, Aix-Marseille School of Economics, France.
    20. Héctor Pifarré i Arolas & Christian Dudel, 2019. "An Ordinal Measure of Population Health," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 1219-1243, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-02365-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.