Enhancing Enterprise Integration: Analyzing the Impacts of the Belt and Road Initiative on High-Quality Development in the People’s Republic of China

Abstract

Amid the backdrop of globalization, international trade has emerged as a crucial driver of economic development. The People’s Republic of China (PRC), as the instigator and key participant in the “Belt and Road” initiative, has garnered substantial attention for its trade collaborations with other participating countries. While numerous studies have examined the impact of the initiative on the PRC’s export trade, there has been relatively limited research on its influence on imports by Chinese enterprises. Hence, this paper aims to address this gap by utilizing the PRC’s customs import data from 2010 to 2015 and focusing on enterprises located in the PRC’s core cities along the Belt and Road route. The study seeks to analyze the initiative’s impact and the underlying mechanisms it employs to shape their import patterns. The findings of this research demonstrate that the Belt and Road initiative plays a significant role in fostering “quality growth” through two primary channels: product diversity and urban innovation capability. Notably, these effects are particularly pronounced for foreign-funded enterprises, capital goods, and enterprises situated in coastal cities. By using the Belt and Road initiative as a case study, this paper provides valuable insights that can inform efforts to further enhance the impact of international cooperation, actively expand imports, and achieve the high-quality development of foreign trade.

Keywords

• Belt and Road Initiative
• difference-in-differences model
• import diversity, quality of imports