China's Belt and Road Initiative Boosts Trade Flows, Reshaping Global Economies
Researchers looked at how China's Belt and Road Initiative impacts trade with partner countries using data from 123 nations between 2012 and 2019. They used a model that considers factors like distance between countries, cultural similarities, and income levels, adding in whether a country is part of the BRI or the World Trade Organization (WTO). Results showed that distance between nations has a negative effect on trade, while shared language and higher incomes have positive effects. Being in the WTO is good for trade, and being in the BRI also boosts trade between China and its partners. The benefits of the BRI are particularly high in regions like the Middle East, Europe, South Asia, and East Asia, but less so in places like Latin America and North Africa.