The Economics of the Belt and Road Initiative

Abstract

This chapter offers an ‘economic perspective’ to the Belt and Road Initiative (BRI). It documents the economic relevance of BRI. It reveals that BRI is multi-faceted in terms of China’s foreign economic cooperation, and two salient facts can be highlighted. First, BRI offers market opportunities but with significant risks, administrative trade burden, and technological impediment to connectivity. Second, the China-BRI economic cooperation post-BRI has increased in absolute terms, but only relatively for exports and contracted infrastructure projects. This chapter outlines the economic drivers, economic impact, and politico-economic challenges of BRI. A few implications are drawn in light of these aspects.