Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/269192 
Year of Publication: 
2022
Series/Report no.: 
IFN Working Paper No. 1439
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
Chinese investment abroad has grown significantly in connection with the Belt and Road Initiative. This article tries to answer two questions: first, what considerations gave birth to the BRI? And second, what are the project's economic effects in terms of capital flows and international trade? It is found that the project is above all a way to deal with large surplus capacity in China's capital-intensive industries, to increase growth in relatively poor regions of the country, and to secure a supply of energy and raw materials. For other countries involved in the project, BRI investments are a means to increase production and international trade. International trade and foreign direct investment have been positively affected, although to a limited extent. Finally, there are concerns that lack of transparency in Chinese lending may lead to increased corruption, and that some countries will face financial difficulties.
Subjects: 
The Belt and Road
China
Trade
FDI
Investments
JEL: 
F10
F20
O10
O50
Document Type: 
Working Paper

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