The Value Chain Network Basis of China‘s Belt and Road Initiative

Using a transnational input-output dataset with 188 economies from 1990 to 2016,this paper provides the first evidence of the global value chains (GVCs) foundation for China‘s Belt and Road initiative.We find that the value chain linkages between China and the Belt and Road economies are much weaker than those between China and other economies especially higher-income developed ones.Even within the Belt and Road,China tends to have relatively closer value chain linkages to the higher-income economies.The Belt and Road initiative can indeed improve the value chain connections between China and relevant partners,but such impact is mainly reflected in the value chain linkages with high-income economies.China tends to maintain a stronger value chain relationship with economies with higher centrality in the global production network,but most of the Belt and Road economies have lower income levels and network centrality.The evidence provided in this paper will help to answer the important question of how to select good partners of regional economic integration,and answering this question will undoubtedly help China to further optimize the strategic layout and policy implementation of regional economic integration.