Expected levels of sectoral economic integration : implications of the BRI project for resource-rich countries

Abstract

This study investigates the expected levels of sectoral economic integration resulting from the Belt and Road Initiative (BRI) in two emerging resource-rich host countries (Kazakhstan and Russia). It also investigates the expected levels of integration in two advanced resource-rich countries (Australia and Canada) and two technology-rich countries (Germany and China). This study explores factors that may affect the design of the policies that the governments of these countries used to implement to restrict or support investments in critical industries, including infrastructure and digital technologies. It adopts a qualitative research design based on 30 interviews and secondary data sources from six countries. We suggest that BRI-driven Foreign Direct Investment (FDI) in critical industries may result in economic integration at the industry level. Through economic integration based on the internationalisation of Chinese companies, resource-rich countries can develop new industries and therefore diversify their economies.