Please use this identifier to cite or link to this item: http://hdl.handle.net/20.500.11861/8795
Title: Tests of goods market integration between China and African BRI countries
Authors: Dr. LEE Shu Kam 
Shum, Paul Kwok-ching 
Dr. WOO Kai Yin 
Issue Date: 2024
Source: International Studies of Economics, Jun. 2024, vol. 19(2), pp. 223 - 246.
Journal: International Studies of Economics 
Abstract: The Chinese Government has promulgated the “Belt and Road Initiative” (BRI) to increase trade flows and integrate goods markets between China and BRI countries. The validity of purchasing power parity (PPP) implies well-integrated goods markets, a precondition for further economic convergence, and the next stage of economic integration in factor, service, and financial markets. Our study aims to examine the validity of the PPP and the extent of goods market integration between China and selected BRI countries in Africa. Since the functional form of the cointegrating relationship may not be exact or linear, we adopt the nonparametric rank tests for analysis without prior knowledge and specification of the functional form. We also address the rank problems that occur in multivariate rank tests. Our empirical results provide strong evidence of an unrestricted PPP relationship with reasonably strong evidence of nonlinearity in the data. We also find that some African BRI countries have experienced goods market integration with China during the second-half period only. This indicates that the introduction of the BRI in 2013 and China's active involvement in African economic development through BRI projects are leading to enhanced goods market integration between China and Africa. The results indicate favorable prospects of closer economic cooperation in the factor, service, and financial markets to build a free trade area or common markets with BRI countries in Africa.
Description: Open access
Type: Peer Reviewed Journal Article
URI: http://hdl.handle.net/20.500.11861/8795
ISSN: 2831-3224
DOI: 10.1002/ise3.71
Appears in Collections:Economics and Finance - Publication

Show full item record

SCOPUSTM   
Citations

1
checked on Oct 6, 2024

Page view(s)

139
Last Week
0
Last month
checked on Oct 11, 2024

Google ScholarTM

Impact Indices

Altmetric

PlumX

Metrics


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.