Title: One belt one road: a new aspect on income convergence

Authors: Mui-Yin Chin; Sheue-Li Ong; Yee-Qin Kon

Addresses: Faculty of Accountancy, Finance and Business, Department of Economics and Corporate Administration, Tunku Abdul Rahman University College, Jalan Genting Kelang, 53300 Setapak Kuala Lumpur, Malaysia ' Faculty of Economics and Administration, Department of Economics, University of Malaya, 50603 Kuala Lumpur, Malaysia ' Faculty of Accountancy, Finance and Business, Department of Economics and Corporate Administration, Tunku Abdul Rahman University College, Jalan Genting Kelang, 53300 Setapak Kuala Lumpur, Malaysia

Abstract: In light of the one belt one road (OBOR) initiation, this study aims to examine the presence of income convergence in selected Association of Southeast Asian Nations (ASEAN) countries and China using spatial econometric methods. The result shows evidence of income convergence among the countries and implies that the ASEAN economy would be ameliorated if the trade relationship with China is further enhanced through implementation of the OBOR initiative. Thereafter, using bilateral trade as a weighting, the estimation affirms that the selected countries and China will enjoy income convergence. Thus, this result forecasts that the OBOR implementation would bring benefits to ASEAN countries and China.

Keywords: income convergence; spatial econometric methods; ASEAN-China bilateral trade; ASEAN-China FDI.

DOI: 10.1504/IJTGM.2019.101544

International Journal of Trade and Global Markets, 2019 Vol.12 No.3/4, pp.241 - 249

Received: 25 Jul 2018
Accepted: 29 Nov 2018
Published online: 12 Aug 2019 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article