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This study aims to determine how and through what mechanisms the outward foreign direct investment (OFDI) promotion effect of the Belt and Road initiative (BRI-OFDI) affects domestic investment. It is motivated by the context that China is fostering a new development pattern, as well as by the impetus from the Belt and Road initiative for the new pattern.

Drawing on data of Chinese-listed companies, this study uses a difference-in-difference method to explore the effect of the BRI-OFDI on domestic investment and a mediation model to illustrate the mechanisms.

The BRI-OFDI has a significantly positive effect on domestic investment, meaning that the Belt and Road initiative's OFDI promotion effect crowds in domestic investment. The results are heterogeneous: the crowding-in effect mainly exists in non-state-owned and technology-intensive enterprises, while a crowding-out effect is seen in state-owned and labor-intensive enterprises. The easing of corporate financing constraints and the expansion of market demand are two important mechanisms.

This study uses the Belt and Road initiative as an exogenous shock to investigate the impact of the initiative-induced OFDI promotion effect on domestic investment. It addresses the potential endogeneity issue confronting the studies on the relationship between OFDI and domestic investment in the literature. The authors focus on the possible spillover effects of the Belt and Road initiative discussing the impact of the BRI-OFDI on domestic investment from the micro-firm perspective. It offers a new perspective to objectively assess the initiative's policy effect.

The China’s Belt and Road Initiative (BRI, hereafter) has reenergized the Silk Road concept, with most literature focusing on the political and economic effects of the BRI. While certain aspects of the Digital Silk Road (DSR), digital component of BRI, have been researched, much less focus has been placed on the technological development, tech transfer and information diffusion aspects of the BRI. The aim of this study is to investigate the opportunities, issues and critiques that have arisen as a result of the Belt and Road Initiative’s implications on innovation, knowledge transfer and dissemination.

Research in its nature is descriptive. Literature reviews are a significant part of the development of a field. Therefore, secondary sources were considered.

The literature and the study have highlighted several opportunities, problems and criticism that decision-makers and the relevant agencies and institutions should take into account when deciding how to move forward with BRI and its digital component DSR.

This paper contributes to the research literature on BRI and its subset DSR’s impacts on innovation, knowledge transfer and information diffusion. In fact, the DSR’s primary aim is to strengthen international cooperation in the digital economy. Furthermore, digital platforms now play a significant role in global trade, emphasizing the necessity of DSR.

Drawing upon the institutional theory, the present study investigated whether or not small and medium-sized enterprises (SMEs) in East Africa benefit from the Belt and Road Initiative (BRI), and how the latter influences the internationalization of the former.

An in-depth interview was conducted by using 26 SME managers/owners who are engaged in international activities in the “Belt and Road” countries. The sample was chosen from four East African countries across three industries. The theoretical framework emerged from the grounded theory analysis of the primary data.

The authors found that the BRI as a formal institutional force generates both direct and indirect influences on SMEs' internationalization. Three key driving forces, namely partnerships, specialized services and innovativeness underpin the internationalization of SMEs. Additionally, sectoral analysis of the similarities and differences in responses reveals no remarkable differences in the drivers and impact of the BRI on SMEs in all the three industries investigated.

The internationalization process of East African SMEs could be augmented through formal institutions like the BRI, and the internationalization of SMEs along the “Belt and Road” countries mimic an integrative approach. The theoretical framework demonstrates significant potential for further benefits that SMEs may obtain through the BRI by taking advantage of certain BRI opportunities and adopting crucial strategies to internationalize rapidly.

This is the first study to employ a qualitative approach to study the influence of the BRI at the firm-level. Specifically, the paper covered the hub of BRI countries in East Africa. Hence, the study makes substantial theoretical and policy contributions to the literature.

In as much as it is contested, the Belt and Road Initiative (BRI) is also unexplored, underdiscussed, and, as a result, misunderstood. Frequently viewed through the lens of international relations and global economy, the diverse dimensions of collaboration, including business and research-industry clusters, that BRI enhances, tend to be excluded from the analysis. In a similar manner, the role of the Arab Peninsula in the grand strategy underpinning BRI and its implementation is rarely discussed. BRI is a forward-oriented initiative, an attempt to reap benefits of developments and circumstances that are only nascent. This bears two potent implications. First, as China attempts to influence the context in which it operates, it is subject to change itself; the Chinese business sector evolution attests to that. Second, some of China’s not so obvious partners of today, including those in the Arab Peninsula, are about to turn into key interlocutors of tomorrow. BRI taps into opportunities thus created. This chapter elaborates on these issues and, against this backdrop, outlines how the remaining chapters included in this volume add to this discussion.

In an attempt to satisfy the desire to become a global economic leader, China is working on a series of ambitious deals with several countries. As a major country in a region considered as an emerging market, the immense infrastructure gap that is curtailing trade and accessibility for economic growth has led to major changes in economic policy. The past few decades have seen China invest billions of dollars not only in the developing countries of Africa and Asia but also in other world economic giants of Europe and the USA. China has embarked on a rigorous global effort to close the infrastructure gap through the Belt and Road Initiative (BRI) in partnership with multilateral development banks. China’s BRI brings together several countries in East Asia and the Eurasian mainland into close proximity with China, thereby promoting inland trade between the countries. The investments in this project are estimated to reach US$1tn over a span of ten years. However, the volume of outward foreign direct investments (OFDI) from China to the host countries is determined by several factors. Several previous researchers have studied various issues affecting the business activities of China and the given countries. First, the cultural organization, policy approaches and objectives of China as a country create trade barriers with countries involved in the BRI plan. This paper aims to provide a comparative overview of how the institutional distance of the Belt and Road countries from China affects their sustainable development.

Data on the nature, success and challenges of the BRI (such as the volume of bilateral trade and OFDIs and its financial implications) were extracted from various published studies. The impact of cultural distance and internationalization of the BRI enterprise was analyzed through a comparative research methodology.

A significant relationship exists between institutional distance and sustainable development of the Belt and Road countries. However, the barriers – for example, inhospitable culture and regulations for organizations in participating countries – could become pillars of success once resolved.

Previous studies lacked a standard framework to investigate how institutional distance is related to China’s outbound trade with the Belt and Road countries. The comparative analysis methodology adopted in this study fills this gap.

This purpose of this paper is to explore China’s choice to focus early Belt and Road Initiative (BRI) Africa outreach on Eastern Africa. The BRI specifically seeks to achieve ten economic and policy objectives, as outlined in the two launch speeches of 2013. In terms of realising these, the economic development and digitisation levels, that progress of the demographic transition, and the important security context of the sub-region, logically make East Africa relatively important to BRI in continental context. Kenya specifically is important in being an African frontier therein, and, also, because it shares a few important borders with landlocked countries, including Ethiopia, Sudan and Uganda, alongside a strategic coast and ports. From this lens, as well the fact that in the Ming Dynasty Chinese fleets reached what is modern-day Kenya, China’s early BRI outreach to Africa having had a historical precedent in initially focusing on Eastern Africa, might be usefully understood.

To realise that aim a comprehensive survey of related literature and policy documents, in Chinese, English and Swahili, was undertaken and relevant data compiled and analysed.

To the best of the authors’ knowledge, first, this paper is the first to argue that the Belt and Road Initiative in Africa may build on abstract long-run logic in terms of economics, demographic change and security. This provides a contrary perspective to the pre-existing established “debt trap diplomacy” and no consistent logic narratives. Second, it is the first to offer a synthesised analysis of the BRI in Africa, East Africa specifically, looking across economic, demographic and security angles.

The paper is a synthesis of development and regional economics literature that forges some prospective rationales only. It is not an empirical research paper drawing very specific and definitive conclusions.

Amid widespread geo-economic tensions and uncertainty, around the Belt and Road Initiative in particular, this paper offers a new economic development-oriented logic for the choice of an important node of the China's Belt and Road Initiative, that of East Africa, Kenya especially. This may impact existing related narratives and policy responses.

Equivalently to the above this may then have an impact on the ground in East Africa and beyond.

The first such or even close to synthesis.

This study aims to investigate how the Chinese Belt and Road Initiative (BRI) and Chinese outward foreign direct investments (FDI) impact the Belt and Road countries (BRCs). It draws on postcolonial theory to investigate the (geo)political objectives behind the financial and economic means.

In line with the nature of postcolonial studies, the study applies a discourse analysis integrating it with empirical data on indebtedness and trade.

This study finds that FDI and the BRI, as a development project, need to be considered a double-edged sword for the receiving countries. The authors provide evidence that China has instrumentalized financial and economic means to gain political influence and pursue geopolitical ambitions. Moreover, investments into sensitive sectors (e.g. energy, infrastructure), combined with the BRCs’ inability to pay back loans, could eventually lead to China gaining control of these assets.

The study investigates the financial and economic means that are instrumentalized to gain political influence while not considering flows of technology and know-how. It also limits itself to the study of FDI coming from one specific country, i.e. China. Therefore, no comparison and evaluation are made of FDI from other countries, such as the USA or European countries.

By revealing noncommercial objectives and geopolitical ambitions that China pursues through the BRI, the authors derive policy implications for the BRCs, third countries and China.

The study contributes to postcolonial theory and neocolonialism by investigating how China uses financial and economic means to achieve noncommercial objectives and pursue geopolitical ambitions. Additionally, the authors enhance the understanding of FDI by highlighting more subtle aspects of the complex and contextual nature of FDI as a social phenomenon, which have been overlooked thus far. The authors challenge the predominant positive framing of FDI and provide a counterpoint to the way FDI is often coined.

The objective of this study is to address the diplomatic and economic implications of the participation of Latin America and the Caribbean (LAC) countries in the Belt and Road Initiative (BRI).

The study examines official documents related to the BRI and LAC's signing of the Memorandum of Understanding within the framework of the BRI (MoUs) in order to look into what it means to join the BRI. Additionally, it also introduces the findings of articles in Asian Education and Development Studies' current issue published in 2020.

In LAC, the BRI does not represent a new policy, but rather the updating and rebranding of a pre-existing one. The BRI primarily consists of an official discursive framework which aims to build a coherent narrative for a wide range of different projects and policies geared toward the improvement of connectivity with China through the development of trade and investments. However, most of these projects were implemented prior to the BRI. Pragmatism lies at the core of this framework which neither has a regulated accession process nor any binding effects. As a result, the signing the MoU represents, foremost, a diplomatic mise-en-scène. The study operates under the belief that BRI membership is not dichotomous; rather, it must be observed in terms of the countries' level of participation. In line with this, the implementation of a generalized BRI policy in LAC countries would not be advisable. Moreover, it must be noted that the BRI's reach to Latin America can be rather problematic due to the fact that the latter was not initially a participant.

The study aims to explore the significance of the BRI beyond the official discourse and discuss the involvement of LAC countries in it. Scholars studying the BRI in other regions have noted that there is not enough information on this policy in the context of LAC.

The relevance of the research topic is due to the high importance of the Belt and Road Initiative (BRI) for increasing the presence of China in the markets of the countries of the New Silk Road. The topic becomes more relevant due to the ambiguous results of the BRI, although it was launched in 2013. On the one hand, the effect for China is growing. On the other hand, the effect for the participating countries has not yet reached the level initially declared.

The chapter aims to identify the main challenges and advantages of the BRI based on the involvement of countries and their markets in the trade and economic system formed by China.

The research novelty lies in studying the economic goals and objectives of the People's Republic of China (PRC) under the BRI and the possibilities of using the trade and economic system created by the PRC for developing the PRC and the BRI member countries.

The authors found that the initiative is designed to better integrate the economy of China at the regional and global level, promote the socio-economic progress of the less developed western territories of the country and stabilize foreign trade and domestic socio-economic processes in conditions of global instability. The authors justify that this initiative, uniting more than 80 countries in Asia, Africa and Oceania, will strengthen China's role in the world economy and trade, form a specific international trade and economic platform under the leadership of China and provide the country a leading position in at least three parts of the world.

The authors use traditional economic research methods, such as scientific abstraction, deduction, analysis and synthesis. Additionally, the authors use the method of visualization based on the application of the statistical method.