One belt, one road, one way? Where European exporters benefit from the new silkroad

Abstract We analyze the trade effects of a new unfolding transport infrastructure in connection with China’s Belt and Road Initiative . Using panel data for years 1996–2018, featuring 27 exporting countries 96 industries, we exploit variation timing number railway connections to estimate whether European benefit from increased export revenues product variety their shipments China. find that both increase also indirectly connected benefit. additional on mode transport, industries intermediate time-sensitivity appear utilization rail-freight China most confirm overall exports is driven by these industries. further show mainly Central, Eastern Southeast regions are specialized economic activities related “railway adopting industries”, which makes likely first-order gains improved market access opportunities.