The Belt and Road Initiative's (BRI) Impact on International Trade of SAARC Countries

Naveed Sultan(Faculty of Management and Economics, Kunming University of Science and Technology, Kunming, Yunnan, 650500, China)
Chaojun Yang(Faculty of Management and Economics, Kunming University of Science and Technology, Kunming, Yunnan, 650500, China)
Waheed Sultan(Faculty of Arts and Humanities, Karakoram International University, 15100, Pakistan)

Abstract

The impact of the Belt and Road Initiative (BRI) on foreign commerce in the nations that make up the South Asian Association for Regional Cooperation (SAARC) is compared in this study. With data taken from the World Integrated Trade Solution (WITS) for two different time periods (2008–2012 and 2014–2018), the study assesses changes in imports, exports, trade balances, and foreign direct investment (FDI) in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Different patterns in trade dynamics are revealed by the findings. Bangladesh had notable improvements in trade over the 2014–2018 period, whereas Afghanistan’s development was less than anticipated. Bhutan’s trade development was encouraged and in line with the goals of the Belt and Road Initiative. India demonstrated trade endurance by continuing to develop steadily. Positive developments were demonstrated by the Maldives, Nepal, Pakistan, and Sri Lanka, confirming the BRI’s contribution to the growth of commerce. There have been improvements in the trade balances of Pakistan, Afghanistan, and the Maldives. Following the BRI, the FDI landscape steadied, with increases in FDI observed in Pakistan, Afghanistan, and the Maldives. With an emphasis on the significance of taking into account the particular context of every nation and the dynamic nature of international commerce, this research offers a comprehensive assessment of the effects of the Belt and Road Initiative. The results provide insightful information to help stakeholders, scholars, and policymakers navigate the intricate web of international commerce in the SAARC area.

Keywords

Belt and Road Initiative; SAARC countries; International trade; Comparative analysis

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DOI: http://dx.doi.org/10.26549/jsbe.v7i1.15902