Abstract
The Belt and Road Initiative (BRI) key element is to accelerate infrastructure investment, which, in turn, improves the connectivity and enhances trade and foreign direct investment of BRI-participating countries. Thus, this study attempts to investigate and compare the impact of infrastructure investment on the economic growth of the African and Asian BRI-participating countries. The results reveal that infrastructure development imposed negative and significant impact on both African and Asian regions' economic growth in the long-run. Conversely, the findings reveal a bi-directional Granger causality between economic growth and infrastructure development in both African and Asian regions in the short run. Nevertheless, the accumulation of capital formation only imposed a significant positive impact on the economic growth of the Asian region. As a result, policymakers from each region could exchange ideas on spurring economic growth of respective regions. However, they should formulate different policies to reap the BRI benefits.
| Original language | English |
|---|---|
| Pages (from-to) | 1-43 |
| Number of pages | 43 |
| Journal | Contemporary Chinese Political Economy and Strategic Relations |
| Volume | 8 |
| Issue number | 1 |
| Publication status | Published - 1 Apr 2022 |
Keywords
- African regions
- Asian
- BRI
- Infrastructure index
- Principal Component Analysis
- economic growth
ASJC Scopus subject areas
- Sociology and Political Science
- Economics and Econometrics
- Political Science and International Relations
