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The Impact Of China'S One-Belt One-Road Initiative On International Trade And Global Value Chains

Author

Listed:
  • Yuxin Lu

    (Gdansk University of Technology, Gdansk, Poland)

  • Joanna Wolszczak-Derlacz

    (Gdansk University of Technology, Gdansk, Poland)

Abstract

This study examines the potential effects of China's "One-Belt One-Road" initiative (OBOR) on trade flows and global value chain connections. The empirical analysis is based on the augmented gravity model of international trade, which comprises 186 reporters and 199 partners in the period 2000-2018. We also estimate the gravity model for involvement in global value chains (domestic and foreign value added in exports and the value contributed by a partner to a reporter's exports). OBOR proves to be positively correlated with international trade and global value chains (GVC), while some of the corridors seem to be more beneficial than others (e.g. China-Pakistan, China-Mongolia-Russian Federation, and Bangladesh-China-India-Myanmar).

Suggested Citation

  • Yuxin Lu & Joanna Wolszczak-Derlacz, 2020. "The Impact Of China'S One-Belt One-Road Initiative On International Trade And Global Value Chains," GUT FME Working Paper Series A 62, Faculty of Management and Economics, Gdansk University of Technology.
    • Handle: RePEc:gdk:wpaper:62
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    One-belt one-road; China; gravity trade models; global value chains;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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