Does Belt and Road Initiative attract Cross-Border M&As from other countries?

Chaoqun Zhan, Hanxi Wang, Chenxue Hou*

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review


This article examines how the Belt and Road Initiative (BRI) affects Cross-Border M&As (CMAs) inflows to countries along the Belt and Road routes (BRI countries) from non-BRI countries. We conduct a difference-in-differences estimation with a control group constructed through propensity score matching. We find that the BRI significantly reduces CMAs from non-BRI countries to BRI countries. The results are robust to various concerns and specifications. We uncover two important mechanisms driving the results: the increased CMAs within BRI countries and the potential debt risks. We also find heterogeneous effects across countries.

Original languageEnglish
Pages (from-to)1916-1942
Number of pages27
JournalThe World Economy
Issue number5
Early online date26 Oct 2023
Publication statusPublished - May 2024

Scopus Subject Areas

  • Accounting
  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

User-Defined Keywords

  • Belt and Road Initiative
  • Cross-Border M&As
  • debt risk


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