The impact of Chinese overseas industrial parks on the productive capability of BRI host countries

• Published in: China economic review Vol. 85; p. 102183
• Main Authors: Liu, Haiyue, Wang, Cangyu, Zhang, Qin, Wang, Yile
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01-06-2024
• Subjects: Economic complexity; Overseas industrial park; Productive capability; Productive capability; Economic complexity; Overseas industrial park
• ISSN: 1043-951X; 1873-7781
• DOI: 10.1016/j.chieco.2024.102183

Overseas industrial parks (OIPs) offer platforms to host countries for foreign and domestic company agglomeration in key industries to promote economic development. This study examined 123 Chinese OIPs in “Belt and Road Initiative” (BRI) countries to study the productive effects in the host countries for a sample period of 2010 to 2018. It was found that Chinese OIPs, especially high-tech, logistics, multi-sector and state-owned ones, significantly increased local productive capabilities through trade promotion and employment generation. Host countries with higher level of governance, business environment, finance, transport, and bilateral investment protection had more pronounced effects. This paper provides evidence for China's industrial park spillovers and insights into the internationalization performances of developing economies.
•Rare developing countries have built industrial parks abroad like China.•Chinese overseas industrial park (OIP) can increase local productive capability.•Increased import from China and local employment partly transfers the productive effect.•Improving environment of governance, business, finance, transport and bilateral investment benefits the productive effect.•High-tech, logistics and multi-sector OIPs show the most significant productive effect.