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Trade

How Much Will the Belt and Road Initiative Reduce Trade Costs?

Michele Ruta's picture
The Belt and Road Initiative (BRI) is a development strategy proposed by China to improve cooperation on a trans-continental scale. The range of projects and activities that will be part of the BRI is very wide, including policy coordination, infrastructure, trade and investment, financial and people-to-people exchanges. But a key goal of the Initiative is to boost connectivity and reduce trade costs through new and improved transport infrastructure projects.
 

Foreign Investment Growth in the Belt and Road Economies

Maggie Xiaoyang Chen's picture
A major objective of the Belt and Road Initiative (BRI) is to reduce the time and cost it takes to transport goods and people across BRI economies. Many of these countries face serious gaps in infrastructure, especially related to trade and investment.
 
Traveling on a rural highway in Kazakhstan. PhotoCredit: Kubat Sydykov / World Bank 

Six Corridors of Integration: Connectivity Along the Overland Corridors of the Belt and Road Initiative

Charles Kunaka's picture
The six land corridors that are the “Belt” part of the Belt and Road Initiative (BRI) connect more than sixty countries, a number that keeps growing as more and more countries join. However, even as the initiative progresses, there are still open questions as to what each participating country will gain from the initiative.
 

Beyond Infrastructure: Trade Facilitation Priorities for the Belt and Road Initiative

Marcus Bartley Johns's picture
Countries participating in the Belt and Road Initiative face a major challenge in facilitating trade. While large investments in trade-related infrastructure capture global headlines, transaction costs generated by inefficient border clearance and trade-related regulatory requirements are one of the major policy risks facing the BRI.
 

How to measure trade protection?

Caroline Freund's picture

What is the best single measure of a country’s import tariffs? As we know, countries don’t have a single tariff, but a landscape of tariffs and other trade barriers. For comparison purposes, it is useful to distill the array of tariffs down to a single number.

In terms of tariffs, there are two common ones: the simple average Most Favored Nation (MFN) applied tariff and the weighted average MFN applied tariff. (MFN is the tariff that WTO members and other favored partners receive.) Neither is perfect.

Impacts on Global Trade and Income of Current Trade Disputes

Caroline Freund's picture

Much has been written on the escalation of the trade dispute. What hasn’t been discussed is what will be the impact on developing nations who rely on trade as an engine of economic growth for ending poverty.  

As tariffs are beginning to be imposed, my team analyzed the impact of these new tariffs and the potential for tariff escalation in developing countries in a new World Bank working document. We found that the new trade tariffs will depress bilateral trade, disrupt global supply chains, and increase demand for substitutes from developing countries.  
 

Photo Source: Avigator Fortuner, Shutterstock

Exposure of Belt & Road Economies to China Trade Shocks

Paulo Bastos's picture
The Belt and Road (B&R) Initiative seeks to deepen regional integration by improving infrastructure and strengthening trade and investment linkages along the old Silk Road, from China to Europe. With several infrastructure projects already ongoing, the initiative is expected to progressively reduce trade costs over the coming decades, and hence generate long-run economic gains for B&R economies.
 
Photo: Rob Beechey / World Bank

Trade Linkages Among Belt and Road Economies: Three Facts and One Prediction

Michele Ruta's picture
A key objective of the Belt and Road Initiative (BRI) is to promote international trade among participating economies. As a first step to understanding how the BRI will transform trade flows, we need to look at the existing commercial relationships. A recent paper by the WBG studies the evolution of trade and production linkages of the economies along the Belt and Road. Here is what we know so far.

Three Opportunities and Three Risks of the Belt and Road Initiative

Michele Ruta's picture

The Belt and Road Initiative (BRI) is an ambitious effort to deepen regional cooperation and improve connectivity on a trans-continental scale. While the scope of the initiative is still taking shape, the BRI consists primarily of the Silk Road Economic Belt, linking China to Central and South Asia and onwards to Europe, and the New Maritime Silk Road, linking China to the nations of South East Asia, the Gulf Countries, North Africa, and on to Europe. Six other economic corridors have been identified to link other countries to the Belt and the Road.

Improved Trade Policies Can Expand Exports and Drive Growth in Nepal

Gonzalo Varela's picture
Pashminas – scarves and shawls in bright colors made from the wool of Himalayan goats – are one of Nepal’s most well-known exports. In 2016, the country exported over $25 million worth of these products, comprising 3.6% of the country’s total exports. Although the products are popular on international markets, exporters face many challenges in getting their products to customers.

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