Investment Facilitation, Foreign Direct Investment and Total Factor Productivity of Countries along the “Belt & Road”
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Investment Facilitation, Foreign Direct Investment and Total Factor Productivity of Countries along the “Belt & Road”
YANG Dongxu1, YU Jinping2
1. School of Business, Hebei University of Eonomic and Business, Shijiazhuang 050061, China; 2. School of Economics, Nanjing University, Nanjing 210093, China
Abstract At present, promoting investment facilitation and achieving high-quality development have become an important part of the in-depth implementation of the “Belt & Road Initiative”. Based on theoretical analysis, this paper empirically examines how the investment facilitation promotes the progress of TFP in countries along the “Belt & Road” route through FDI. The study found that investment facilitation construction is helpful to improve the TFP of countries along the “Belt & Road Initiative”,?and its mechanism is mainly realized through the spillover effect of FDI (especially cross-border M&A) inflows. And different kinds of investment facilitation construction, such as infrastructure, market environment, system quality and financial services, all contribute to the improvement of TFP in countries along the route. Heterogeneity analysis shows that investment facilitation construction has a significant promoting effect on TFP in countries along the Southeast Asia, the West Asia, and the Central and Eastern Europe regions, but not obvious in countries along the Central Asia, the South Asia and CIS regions. The promoting effect of investment facilitation construction on TFP of countries along the high economic development stage is greater than that of the countries along the middle and low economic development stage. After the “Belt & Road initiative” is proposed, the promoting effect of of investment facilitation on the TFP of countries along the route is greater than before.
YANG Dongxu1,YU Jinping2. Investment Facilitation, Foreign Direct Investment and Total Factor Productivity of Countries along the “Belt & Road”. Economic Survey, 2021, 38(2): 054.
2021, Vol. 38 
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