Impacts of Cross-Country Infrastructure on Bilateral Trade: Evidence from New Silk Road Railways

25 Pages Posted: 22 Jun 2020

See all articles by Ying-Min Kuo

Ying-Min Kuo

Oklahoma State University - Stillwater, Department of Economics & Legal Studies in Business, Students

Mehtabul Azam

Oklahoma State University - Stillwater; IZA Institute of Labor Economics

Date Written: May 18, 2020

Abstract

New Silk Road railways have provided cross-continental rail freight services between China and Eurasian countries since 2011. We examine the impact of being connected to Silk Road railways on the 13 destination countries bilateral trade with China. To address the issue of endogenous placement of railways, we utilize the generalized synthetic control method. We find that the railway connections do not have significant impacts on either gross import or gross export of destination countries. The results are robust to alternative methods, across product categories, and different grouping of destination countries based on whether they share boundary with China.

Keywords: New Silk Road railways, transport corridors, trade volume, generalized synthetic control method

JEL Classification: F10, O18

Suggested Citation

Kuo, Ying-Min and Azam, Mehtabul, Impacts of Cross-Country Infrastructure on Bilateral Trade: Evidence from New Silk Road Railways (May 18, 2020). Available at SSRN: https://ssrn.com/abstract=3605926 or http://dx.doi.org/10.2139/ssrn.3605926

Ying-Min Kuo (Contact Author)

Oklahoma State University - Stillwater, Department of Economics & Legal Studies in Business, Students ( email )

Stillwater, OK
United States

Mehtabul Azam

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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