The Spillover Effects of Chinese Shocks on the Belt and Road Initiative Economies: New Evidence Using Panel Vector Autoregression

This paper investigates the spillover effects of Chinese real and monetary sector shocks on Belt Road Initiative (BRI) economies. The study adopted a panel vector autoregression (PVAR) estimation technique to analyse dynamic propagation in (gross domestic product (GDP) trade openness (OPEN)) (nominal interest rate (NIR)) for sample 50 BRI countries from 2000 2017. main results revealed that income positively spill over all macroeconomic variables except countries’ consumer price index (CPI). However, shock only has temporary positive international negative its policy. In addition, policy GDP CPI shocks, however, do not constitute significant source variation any variable. As explained by shock, is highest percentage variable accumulated time. Further, openness, lastly, beggar-thy-neighbour effect may dominate impact shocks. Hence, economies should alleviate adverse since upcoming rapid growth disturbed Our reveal importance development partners’ significance sectors assisting policymakers designing