Economic globalization with Chinese characteristics

Table of Contents

• 1 Introduction
• 2 Research method
• 3 Belt and Road Initiative (BRI)
  • 3.1 Contributing factors to the emergence of the BRI
    • 3.1.1 The 'Go West' strategy
    • 3.1.2 The 'Go Out' strategy
    • 3.1.3 The ‘China Dream' and Xi Jinping's new leadership
  • 3.2 Revival of the Silk Road
  • 3.3 Information on the Vision and Actions Plan and 13th Five Year Plan
  • 3.4 Chinese financing of BRI
    • 3.4.1 Asian Infrastructure Investment Bank (AIIB)
    • 3.4.2 New Development Bank (BRICS Development Bank)
    • 3.4.3 Silk Road Fund
    • 3.4.4 Chinese policy banks
    • 3.4.5 Chinese commercial banks
    • 3.4.6 Infrastructure investment demand
    • 3.4.7 Conclusion on Chinese BRI financing
  • 3.5 China's motivation for the BRI
    • 3.5.1 Developing China's western provinces
    • 3.5.2 Overcapacity
    • 3.5.3 Fostering exports and moving up the value chain
    • 3.5.4 Renminbi internationalisation
    • 3.5.5 Enhancing energy security
  • 3.6 Risks and obstacles
    • 3.6.1 Security risks
    • 3.6.2 Unstable governments, lack of skills and China's future leadership
    • 3.6.3 Cooperation of all countries along the Belt and Road
    • 3.6.4 Financial feasibility
      • 3.6.4.1 China's financial situation
      • 3.6.4.2 Assumptions about the BRI project's economic feasibility
      • 3.6.4.3 Consequences for recipients
  • 3.7 Conclusion on the BRI
• 4 BRI influence on economic development and economic growth of participating countries
  • 4.1 BRI influence on economic development
    • 4.1.1 Definition of economic development
    • 4.1.2 Economic development theories
      • 4.1.2.1 Economic development theories between the 50s and 90s
      • 4.1.2.2 Paul Romer's new growth theory
      • 4.1.2.3 Theory of coordination failure and the big push theory
      • 4.1.2.4 Conclusion on economic development theories
      • 4.1.2.5 Belt and Road Initiative and economic development
  • 4.2 BRI influence on economic growth through infrastructure
    • 4.2.1 Transport infrastructure's influence on economic growth
      • 4.2.1.1 Macro- and micro-economic effects of increased transport infrastructure
      • 4.2.1.2 Empirical evidence and requirements for economic growth
    • 4.2.2 Economic profitability of Chinese infrastructure projects
    • 4.2.3 Conclusion on BRI's transport infrastructure
• 5 Conclusion
• 6 Limitations and further research

Objectives and Key Themes

This Master's thesis analyzes the economic impact of China's Belt and Road Initiative (BRI) on participating countries. It aims to evaluate the BRI's influence on economic development and growth in these countries, considering the initiative's motivations, financing mechanisms, and potential risks.

• The emergence and evolution of the Belt and Road Initiative.
• China's motivations and objectives behind the BRI.
• The impact of BRI infrastructure development on economic growth.
• Challenges and risks associated with the implementation of the BRI.
• The role of the BRI in fostering economic development and regional integration.

Chapter Summaries

Chapter 1 introduces the research topic, outlining the objectives and scope of the thesis. It explains the significance of the BRI in the context of global economic development and China's growing role in the world.

Chapter 2 discusses the research methodology employed in the study. It clarifies the theoretical framework, data sources, and analytical techniques used to examine the BRI's impact on participating countries.

Chapter 3 provides a detailed analysis of the Belt and Road Initiative itself. It explores the historical context, key objectives, implementation strategies, and financing mechanisms of the BRI, including the role of institutions like the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund. This chapter also delves into the economic motivations behind the BRI, such as China's desire to develop its western provinces, address overcapacity in its manufacturing sector, and promote the internationalization of its currency.

Chapter 4 examines the specific ways in which the BRI influences economic development and growth in participating countries. It focuses on the role of infrastructure development, particularly transport infrastructure, in driving economic growth. This chapter also explores the theoretical frameworks underpinning economic development, discussing concepts like coordination failure, the big push theory, and the impact of infrastructure investment on productivity and competitiveness.

Keywords

Belt and Road Initiative, China, Economic Development, Economic Growth, Infrastructure, Transport Infrastructure, Asian Infrastructure Investment Bank (AIIB), Silk Road Fund, Overcapacity, Renminbi Internationalisation, Regional Integration, Development Theories, Coordination Failure, Big Push Theory.