International Market Integration in the Context of the Belt and Road Initiative

Marina Glushenkova

doi:10.1007/978-981-15-3133-0_4

International Market Integration in the Context of the Belt and Road Initiative

Marina Glushenkova^*

^*Corresponding author for this work

Department of Finance, Accounting and Economics

Research output: Chapter in Book/Conference proceeding › Book Chapter › peer-review

1 Citation (Scopus)

Abstract

This chapter investigates the evolution of market integration among the countries that expressed their interest in the Belt and Road Initiative (BRI). A price convergence within the BRI is tested using individual goods retail price data for a panel of countries covered by the initiative. The tests provide no evidence of the price convergence for the majority of goods between 1990 and 2010. At the same time, China became relatively more integrated with the BRI partners over time, mainly due to the price convergence with Asian economies. The analysis reveals that a large share of price differences between China and its partners can be explained by high trade costs, which underlines the importance of the BRI for enhancing trade integration and price convergence.

Original language	English
Title of host publication	Palgrave Series in Asia and Pacific Studies
Publisher	Springer
Pages	75-97
Number of pages	23
DOIs	https://doi.org/10.1007/978-981-15-3133-0_4
Publication status	Published - 2020

Publication series

Name	Palgrave Series in Asia and Pacific Studies
ISSN (Print)	2662-7922
ISSN (Electronic)	2662-7930

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities
SDG 17 Partnerships for the Goals

Free Keywords

Belt and Road Initiative
China
Integration
Law of one price
Micro prices

ASJC Scopus subject areas

Development
Sociology and Political Science
Political Science and International Relations

Access to Document

10.1007/978-981-15-3133-0_4

Cite this

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abstract = "This chapter investigates the evolution of market integration among the countries that expressed their interest in the Belt and Road Initiative (BRI). A price convergence within the BRI is tested using individual goods retail price data for a panel of countries covered by the initiative. The tests provide no evidence of the price convergence for the majority of goods between 1990 and 2010. At the same time, China became relatively more integrated with the BRI partners over time, mainly due to the price convergence with Asian economies. The analysis reveals that a large share of price differences between China and its partners can be explained by high trade costs, which underlines the importance of the BRI for enhancing trade integration and price convergence.",

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AB - This chapter investigates the evolution of market integration among the countries that expressed their interest in the Belt and Road Initiative (BRI). A price convergence within the BRI is tested using individual goods retail price data for a panel of countries covered by the initiative. The tests provide no evidence of the price convergence for the majority of goods between 1990 and 2010. At the same time, China became relatively more integrated with the BRI partners over time, mainly due to the price convergence with Asian economies. The analysis reveals that a large share of price differences between China and its partners can be explained by high trade costs, which underlines the importance of the BRI for enhancing trade integration and price convergence.

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KW - China

KW - Integration

KW - Law of one price

KW - Micro prices

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M3 - Book Chapter

AN - SCOPUS:85129663363

T3 - Palgrave Series in Asia and Pacific Studies

SP - 75

EP - 97

BT - Palgrave Series in Asia and Pacific Studies

PB - Springer

ER -

International Market Integration in the Context of the Belt and Road Initiative

Abstract

Publication series

UN SDGs

Free Keywords

ASJC Scopus subject areas

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