Impact of One Belt One Road strategic initiative on economic well-being and international trade integration: The South Asian case

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Abstract

The Belt Road Initiative (BRI) is one of the main plans by the Chinese government where the objective is to expand the trade routes of China with the rest of the world. The initiative took effect on 7 September 2013, when the country stated the action plan to the extent of the link between China and Europe across many countries in the Eurasia and Indian Ocean (Cubbert & Chaudhary, 2018). The extensive investment by China in other countries has paved the way for effective growth in the future for the host countries. However, it has also raised concerns in the global economy where authorities have claimed that the initiative is intended to extend the political influence of China and is a form of economic imperialism practiced by the country. In this sense, it becomes important to assess the effect of this initiative on the sustainability of the host nations, especially the poor countries that face greater consequences due to their inability to pay back their debt. The underlying study aims to explore this case where the effect of the BRI on the trade integration and economic well-being of the South Asian nations are assessed. This means that the study explores the changes in the nexus of foreign direct investment (FDI), trade, and growth in South Asia due to the BRI involvement. It stated that the BRI has been effective in facilitating higher growth in the recipient nations, however, their trade relationship with the rest of the world has been questionable since their participation in the initiative. The government in South Asia needs to closely monitor the investment opportunities and the corresponding risks of retaliation by other nations to effectively facilitate a sustainable growth rate and trade integration.

Keywords: Belt Road Initiative, South Asia, Trade Integration, Foreign Direct Investment

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: F14, F21, F30, O20, O29

Received: 12.07.2024
Revised: 02.10.2024; 17.02.2025
Accepted: 18.03.2025
Published online: 20.03.2025

How to cite this paper: Song, R. (2025). Impact of One Belt One Road strategic initiative on economic well-being and international trade integration: The South Asian case [Special issue]. Corporate & Business Strategy Review, 6(1), 430–438. https://doi.org/10.22495/cbsrv6i1siart19