Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects

This paper examines the patterns and economic effects of foreign direct investment across the Belt and Road Initiative countries and assesses the potential role of the initiative in shaping the patterns and effects. Exploring cross-country bilatera...

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Main Authors:	Chen, Maggie Xiaoyang, Lin, Chuanhao
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	FOREIGN DIRECT INVESTMENT TRANSPORTATION COST ECONOMIC GROWTH BELT AND ROAD INITIATIVE TRADE EMPLOYMENT
Online Access:	http://documents.worldbank.org/curated/en/394671539175518256/Foreign-Investment-across-the-Belt-and-Road-Patterns-Determinants-and-Effects http://hdl.handle.net/10986/30577

id	okr-10986-30577
recordtype	oai_dc
spelling	okr-10986-305772022-09-20T00:14:53Z Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects Chen, Maggie Xiaoyang Lin, Chuanhao FOREIGN DIRECT INVESTMENT TRANSPORTATION COST ECONOMIC GROWTH BELT AND ROAD INITIATIVE TRADE EMPLOYMENT This paper examines the patterns and economic effects of foreign direct investment across the Belt and Road Initiative countries and assesses the potential role of the initiative in shaping the patterns and effects. Exploring cross-country bilateral transportation cost and foreign investment data, the analysis shows that, by reducing overall travel times and transportation costs, the proposed Belt and Road Initiative transportation network can pave the way for additional investments and increased growth in gross domestic product. But the magnitude of the effect varies significantly across source and destination countries. Aggregate foreign direct investment in Belt and Road Initiative countries is predicted to increase by around 5 percent, with regions such as Sub-Saharan Africa and East Asia and Pacific seeing greater potential gains. The increase in foreign direct investment can exert a positive effect on GDP, trade, and employment growth, especially for lower-income countries. 2018-10-16T19:16:53Z 2018-10-16T19:16:53Z 2018-10 Working Paper http://documents.worldbank.org/curated/en/394671539175518256/Foreign-Investment-across-the-Belt-and-Road-Patterns-Determinants-and-Effects http://hdl.handle.net/10986/30577 English Policy Research Working Paper;No. 8607 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa East Asia and Pacific Africa Central Asia East Asia Sub-Saharan Africa China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FOREIGN DIRECT INVESTMENT TRANSPORTATION COST ECONOMIC GROWTH BELT AND ROAD INITIATIVE TRADE EMPLOYMENT
spellingShingle	FOREIGN DIRECT INVESTMENT TRANSPORTATION COST ECONOMIC GROWTH BELT AND ROAD INITIATIVE TRADE EMPLOYMENT Chen, Maggie Xiaoyang Lin, Chuanhao Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects
geographic_facet	Africa East Asia and Pacific Africa Central Asia East Asia Sub-Saharan Africa China
relation	Policy Research Working Paper;No. 8607
description	This paper examines the patterns and economic effects of foreign direct investment across the Belt and Road Initiative countries and assesses the potential role of the initiative in shaping the patterns and effects. Exploring cross-country bilateral transportation cost and foreign investment data, the analysis shows that, by reducing overall travel times and transportation costs, the proposed Belt and Road Initiative transportation network can pave the way for additional investments and increased growth in gross domestic product. But the magnitude of the effect varies significantly across source and destination countries. Aggregate foreign direct investment in Belt and Road Initiative countries is predicted to increase by around 5 percent, with regions such as Sub-Saharan Africa and East Asia and Pacific seeing greater potential gains. The increase in foreign direct investment can exert a positive effect on GDP, trade, and employment growth, especially for lower-income countries.
format	Working Paper
author	Chen, Maggie Xiaoyang Lin, Chuanhao
author_facet	Chen, Maggie Xiaoyang Lin, Chuanhao
author_sort	Chen, Maggie Xiaoyang
title	Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects
title_short	Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects
title_full	Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects
title_fullStr	Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects
title_full_unstemmed	Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects
title_sort	foreign investment across the belt and road : patterns, determinants, and effects
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/394671539175518256/Foreign-Investment-across-the-Belt-and-Road-Patterns-Determinants-and-Effects http://hdl.handle.net/10986/30577
_version_	1764472418565357568

Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects

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