Global Value Chain,Energy Efficiency And Economic Growth:Evidence From Bri Countries

The Belt and Road Initiative(BRI)promotes the development of technology,trade,global value chains,energy,transportation and exchanges between China and the rest of the world,which are essential for economic growth and development.This paper explores the complex relationship between global value chains,energy efficiency and economic growth.Specific objectives include:(1)To investigate how BRI has contributed to economic growth patterns and GVC participation,as well as the impact of the GVC on economic growth in the context of BRI countries in Asia.(2)To investigate how BRI has influenced patterns of GVC participation and economic growth,as well as the impact of GVC on energy efficiency in BRI countries in Europe.(3)To examine the relationship between GVC,energy consumption efficiency and economic growth using 70 BRI countries.For research objective one,the findings from the study reveal a significant improvement in GVC as recorded for most Asian countries after the BRI program.This may indicate that the program is achieving its purpose to some extent in Asia.Results show that the countries’ GVCs position and participation were not steady before and after the BRI.However,the positive effect of GVC participation on economic growth for the sampled Asian countries indicates that the decision to participate in global trade positively affects the country’s economy.For research objective two,the results show that as a result of the BRI,the GVC participation and GVC position of the BRI European member countries has increased significantly.Furthermore,most European countries were more energy efficient in 2015-2017 than in 2011-2014.This shows that the overall energy efficiency investment in European countries has improved significantly after implementing the BRI,reflecting the important contribution of the BRI to the energy efficiency of European countries.The regression results also show that the GVC participation index of European countries has a significant negative impact on energy efficiency in the region.However,the findings suggest that the trade balance and energy investment of European countries positively impact energy efficiency in the region.For objective three,the research reveals a positive feedback loop between GVC participation,energy efficiency,and economic growth for the 70 BRI countries.For this objective,we demonstrate how the shift in GVC participation impacts energy efficiency and economic growth.The study reveals that while most countries are located at the bottom end of the value chain,they are showing signs of progress upward.Furthermore,some countries,especially emerging ones,have demonstrated that both energy efficiency and economic growth benefit from this major improvement in GVC participation,despite not operating effectively in terms of energy consumption.This study,to an extent,projects the benefits and role of the BRI program to the global world.The outcome of this study has a strong implication for attracting many countries to join the BRI programs due to its benefits in stimulating GVC,energy efficiency and economic growth.The findings of this study provide a reference for the Chinese government and stakeholders to assess and monitor the outcomes of BRI projects in the short and long term.