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The Belt and Road Initiative: reshaping economic geography in Central Asia?

Abstract:
This paper develops a computable spatial equilibrium model of Central Asia and uses it to analyze the possible effects of the Belt and Road Initiative on the economy of the region. The model captures international and subnational economic units and their connectivity to each other and the rest of the world. Aggregate real income gains from the Belt Road Initiative range from less than 2 percent of regional income if adjustment mechanisms take the form of conventional Armington and monopolistic competition, to around 3 percent if there are localization economies of scale and labor mobility. In the latter case, there are sizeable geographical variations in impact, with some areas developing clusters of economic activity with income increases of as much as 12 percent and a doubling of local populations, while other areas stagnate or even decline.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1016/j.jdeveco.2020.102441

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Sub department:
OxCarre
Oxford college:
New College
Role:
Author


Publisher:
Elsevier
Journal:
Journal of Development Economics More from this journal
Volume:
144
Article number:
102441
Publication date:
2020-01-22
Acceptance date:
2020-01-13
DOI:
ISSN:
0304-3878


Language:
English
Keywords:
Pubs id:
pubs:998377
UUID:
uuid:ac4839be-02fa-4284-97de-292ed1917740
Local pid:
pubs:998377
Source identifiers:
998377
Deposit date:
2020-01-13
ARK identifier:

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