Impact of Belt and Road Initiative (BRI) Infrastructure Projects on Trade Volume in Africa
Janet Cobbinah, Collins Dodzi DzitseAbstract
Subject and Purpose of work
This study examines the impact of Belt and Road Initiative (BRI)- financed infrastructure investment on trade volume in Africa. It seeks to provide empirical evidence on whether BRI-related infrastructure development enhances trade performance across African economies.
Material and Methods
The study used annual panel data for 49 African countries covering the period 2014-2022. The analysis applied panel regression techniques, including fixed-effects, random-effects, and dynamic panel estimations, to examine the relationship between BRIfinanced infrastructure investment and trade volume.
Results
The results indicate that BRI-financed infrastructure investment positively and statistically significantly affects trade volume across African countries. Foreign direct investment also contributes positively to trade, whereas the effects of income level and population density provided mixed results. Infrastructure development in transportation, energy, and logistics reduces trade costs and enhances market connectivity.
Conclusions
The results highlight the relevance of infrastructure-led development strategies and the need for effective policy coordination and sustainable financing strategies to maximize long-term trade gains.