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

Abstract

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.