Our paper documents a new database we created, and which provides detailed information on the potential decrease in trade costs associated with the Belt and Road Initiative. For each country-pair-sector, we provide the decrease in shipping time, the value of time, and the associated decrease in trade costs.
We also provide a regional database with detailed information at the city-pair level.
The empirical analysis draws on annual data for 40 economies, divided equally into developed and developing ones. The list of advanced countries comprises Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Italy, Japan, Netherlands, New Zealand, Norway, Singapore, Spain, Sweden, Switzerland, United Kingdom, and the United States. The sample of developing countries includes Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Peru, Poland, Russia, South Africa, South Korea, Thailand, and Turkey. The investigation period spans January 2005 through December 2016. The core data set for each country consists of the US-dollar denominated price levels of the MSCI Islamic stock market index and its conventional counterpart, along with levels of political risk.