Author(s)

Hongyue Chen

Corresponding Author

Hongyue Chen

Abstract

Based on the trade gravity model and the panel data of China's direct investment and trade along the “Belt and Road” countries of different economic types from 2007 to 2016, this paper empirically analyzes the trade effect of China's direct investment in different types of countries along the route. The results of the study show that China's direct investment in countries with developed economies has significantly promoted import trade and expanded the scale of imports of developed countries in China. China's direct investment in countries along the economic transition has significant trade effects in both export trade and import trade. It has significantly expanded China's export scale to countries along the economic transition, and has also significantly reduced China's economic transformation along the line. The size of the country’s imports. In addition, China's direct investment in countries along the “Belt and Road” development has an insignificant positive effect on both imports and exports. In short, China's import effect is relatively high regardless of which type of economy is directly invested in the countries along the “Belt and Road”

Keywords

Foreign direct investment, Countries along the “Belt and Road”, Trade gravity model, Trade effect