Does Belt and Road Initiative attract Cross‐Border M&As from other countries

Bibliographic Data

ID21543149
AuthorsChaoqun Zhan (0000-0003-4469-1627, The Department of Accountancy, Economics and Finance Hong Kong Baptist University Kowloon Tong Hong Kong), Hanxi Wang (0000-0003-4130-6981, Department of Economics The Chinese University of Hong Kong Shatin Hong Kong), Chenxue Hou (0009-0008-1419-3022, Business School University of Bristol Bristol UK, corresponding author)
Year2024
Volume47
Issue5
Pages1916-1942
Publication date2024-05-01
Open AccessYes
TypeARTICLE
VenueWorld Economy (JOURNAL)
Journal identifiersISSN: 0378-5920 • E-ISSN: 1467-9701
PublisherWiley (PUBLISHER • GB)
DOI10.1111/twec.13489
OpenAlexW4387974330
LanguageEN
References cited25

This article examines how the Belt and Road Initiative (BRI) affects Cross‐Border M&As (CMAs) inflows to countries along the Belt and Road routes (BRI countries) from non‐BRI countries. We conduct a difference‐in‐differences estimation with a control group constructed through propensity score matching. We find that the BRI significantly reduces CMAs from non‐BRI countries to BRI countries. The results are robust to various concerns and specifications. We uncover two important mechanisms driving the results: the increased CMAs within BRI countries and the potential debt risks. We also find heterogeneous effects across countries

Business · Debt · Developing country · Difference in differences · Econometrics · Economic growth · Economics · Estimation · International economics · Propensity score matching · Statistics · Fiscal Policy and Economic Growth · Global trade and economics · International Development and Aid · Mathematics · Finance

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