CHINESE OUTWARD FDI: IMPLICATIONS TO THE HOST COUNTRIES' ECONOMIC GROWTH
The Belt and Road (B&R) initiative, introduced in 2013, has led to a noticeable increase in China's outward foreign (OFDI) in the B&R countries. This paper aims to investigate the impacts of the Chinese OFDI investment on economic growth in the B&R countries. This study covers 55 B&R countries during 2006-2018. This paper applies the SYS-GMM model to estimate the empirical results. The results show that the Chinese OFDI could promote economic growth in the B&R countries, especially after the B&R initiatives. However, the country's government debt is the critical factor in enhancing the role of such OFDI on economic growth in those countries. Technological development, degree of trade openness, and labor market conditions in the B&R countries are crucial in promoting their economic growth