The Belt and Road Initiative and Regional Infrastructure Finance and Construction

Abstract

This article discusses the rationale for the Belt and Road Initiative (BRI) and conducts an empirical analysis utilising a revised gravity model linking connective infrastructure constructed under the auspices of the BRI with global trade in the 2010–22 period. The authors’ empirical analysis shows that BRI connective infrastructure projects are beneficial to both the export and import countries. After controlling for all other factors, the existence of connective infrastructure in the export country is associated with a 25% increase in its export value, with a significant reduction in the transport costs.