Trade related sectorial infrastructure and exports of belt and road countries: does belt and road initiatives make this relation structurally instable?

ABSTRACT This study investigates the impact of infrastructure on export in Belt & Road countries during 1990–2017 by applying System GMM approach. The results confirmed the significant and positive impact of aggregate and sub-indices (i.e., transport, telecommunication, energy and financial sector) of infrastructure on export in total sample as well is in grouped samples (like Asia, Europe and Middle East, and Africa). Most importantly, this study also examines the pre and post strategy of Belt and Road initiative (BRI) in total sample of belt and road countries. The empirical outcomes reveal that the coefficient of aggregate and all other sub-indices of infrastructure improved due to BRI which in turn encourage export in the selected economies. Furthermore, the control variables of exchange rate, per capita GDP, domestic investment, and institutional quality have also significant effect on export, which strengthen the role of infrastructure in promoting export in belt & road economies.