The impact of China’s One Belt One Road initiative on international trade in the ASEAN region

This study explores the potential effects of China’s ‘One Belt One Road’ (OBOR) policy on trade flows in ASEAN countries and China. We use the augmented gravity model of international trade and data on ASEAN countries and China from 2000 to 2016. The empirical results show that the coefficient of th...

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Main Authors: Foo, Nam, Lean, H.H., Salim, Ruhul
Format: Journal Article
Published: 2019
Online Access:http://hdl.handle.net/20.500.11937/76654
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author Foo, Nam
Lean, H.H.
Salim, Ruhul
author_facet Foo, Nam
Lean, H.H.
Salim, Ruhul
author_sort Foo, Nam
building Curtin Institutional Repository
collection Online Access
description This study explores the potential effects of China’s ‘One Belt One Road’ (OBOR) policy on trade flows in ASEAN countries and China. We use the augmented gravity model of international trade and data on ASEAN countries and China from 2000 to 2016. The empirical results show that the coefficient of the OBOR dummy is positive and statistically significant, which implies that this policy benefits both ASEAN countries and China in terms of increased trade flows among these countries. In addition, the coefficients of other control variables, such as a common language, a common border, and distance, have the expected signs, and all are statistically significant. Thus, the OBOR policy initiative could be a promising mechanism for trade facilitation in these countries in the years to come.
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format Journal Article
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institution Curtin University Malaysia
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publishDate 2019
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spelling curtin-20.500.11937-766542021-10-12T00:13:39Z The impact of China’s One Belt One Road initiative on international trade in the ASEAN region Foo, Nam Lean, H.H. Salim, Ruhul This study explores the potential effects of China’s ‘One Belt One Road’ (OBOR) policy on trade flows in ASEAN countries and China. We use the augmented gravity model of international trade and data on ASEAN countries and China from 2000 to 2016. The empirical results show that the coefficient of the OBOR dummy is positive and statistically significant, which implies that this policy benefits both ASEAN countries and China in terms of increased trade flows among these countries. In addition, the coefficients of other control variables, such as a common language, a common border, and distance, have the expected signs, and all are statistically significant. Thus, the OBOR policy initiative could be a promising mechanism for trade facilitation in these countries in the years to come. 2019 Journal Article http://hdl.handle.net/20.500.11937/76654 10.1016/j.najef.2019.101089 http://creativecommons.org/licenses/by-nc-nd/4.0/ fulltext
spellingShingle Foo, Nam
Lean, H.H.
Salim, Ruhul
The impact of China’s One Belt One Road initiative on international trade in the ASEAN region
title The impact of China’s One Belt One Road initiative on international trade in the ASEAN region
title_full The impact of China’s One Belt One Road initiative on international trade in the ASEAN region
title_fullStr The impact of China’s One Belt One Road initiative on international trade in the ASEAN region
title_full_unstemmed The impact of China’s One Belt One Road initiative on international trade in the ASEAN region
title_short The impact of China’s One Belt One Road initiative on international trade in the ASEAN region
title_sort impact of china’s one belt one road initiative on international trade in the asean region
url http://hdl.handle.net/20.500.11937/76654