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The Impact of Trade Barrier Reductions on Global Value Chains for Agricultural Products in China and Countries along the ‘Belt and Road’

Published online by Cambridge University Press:  16 February 2022

Zhen Zhang ,
Yue Gao  and
Taoyuan Wei Open the ORCID record for Taoyuan Wei [Opens in a new window]
Zhen Zhang
Affiliation:
School of Economics, Ocean University of China, No.238 Songling Road, Qingdao, Shandong 266000, China
Yue Gao*
Affiliation:
School of Economics, Shandong University of Technology, No.88 Gongqingtuan Road, Zibo, Shandong 255012, China
Taoyuan Wei*
Affiliation:
CICERO Center for International Climate Research, P.O. Box 1129, Blindern, NO-0318, Oslo, Norway
*
*Email: gaoyue01@163.com; taoyuan.wei@cicero.uio.no
*Email: gaoyue01@163.com; taoyuan.wei@cicero.uio.no
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Abstract

The Belt and Road Initiative (BRI) may potentially reduce trade barriers between China and countries along the Belt and Road (BR) route, affecting the positions in Global Value Chains (GVCs) of agricultural products of these countries. This study explores the BRI influence on the GVC positions using a global computable general equilibrium (CGE) model and focusing on China and the BR countries. The study finds that the reduction of tariff barriers and non-tariff barriers between countries along ‘the Belt and Road’ results in increased producer prices and volumes of almost all agricultural products exported from China, which improves the position of China in the GVCs of these agricultural products in our best estimate scenario. Countries along the BR route also benefit from the reduction in trade barriers, with improved positions in the GVCs of agricultural products in the best estimate scenario, especially those products that have comparative advantages in GVCs.

Keywords

Belt and Road Initiativeagricultural productsGVCChinatrade barriers
Type
Original Article
Information
World Trade Review , Volume 21 , Issue 2 , May 2022 , pp. 224 - 248
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press

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