BRI Infrastructure Development and Economic Growth

Zhang Hui, Yan Qiangming* and Li Ningjing

School of Economics, Peking University, Beijing, China

Abstract: Infrastructure development is a key aspect of the Belt and Road Initiative (BRI). After measuring the infrastructure stocks of China and BRI countries, this paper estimates BRI countries’ demand for infrastructure development and verifies its economic growth effects, thus demonstrating the importance of the BRI. We found China’s infrastructure stock to be second-highest in the world, next only to that of the United States. While China’s infrastructure development is in sync with its economic development, inadequate in f ra s t ruc tu re p reven t s many coun t r ie s a round the wo r ld f rom un lock ing the i r fu l l economic potential. By providing financing for much-needed infrastructure, the BRI exerts positive effects on economic growth in relevant countries. With a mandate of promoting infrastructure interconnectivity, the BRI will serve as a new driving force shaping a community of shared future for humankind.

Keywords: infrastructure stock, quadrant chart, Belt and Road Initiative (BRI)

JEL Classification Code: H54, O19, O50

DOI: 10.19602/j.chinaeconomist.2021.05.02