Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173141
Authors: 
García-Herrero, Alicia
Xu, Jianwei
Year of Publication: 
2016
Series/Report no.: 
Bruegel Working Paper 2016/05
Abstract: 
The Belt and Road initiative, recently embarked on by China, aims to improve cross-border infrastructure in order to reduce transportation costs across a massive geographical area between China and Europe. The authors estimate how much trade might be created among Belt and Road countries as a consequence of the reduction in transportation costs (both railway and maritime) and find that European Union countries, especially landlocked countries, should benefit considerably. This is also true for eastern Europe and Central Asia and, to a lesser extent, south-east Asia. In contrast, if China were to seek to establish a free trade area within the Belt and Road region, EU member states would benefit less, while Asia would benefit more. Xi Jinping’s current vision for the Belt and Road, centred on improving transport infrastructure, is very good news for Europe as far as trade creation is concerned.
Subjects: 
China
Belt & Road initiative
infrastructure
international economic system
JEL: 
F02
O19
O53
Document Type: 
Working Paper
Appears in Collections:
Social Media Mentions:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.