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The introduction of One Belt One Road Initiative (OBOR) has had a great deal of impact on the integration of China to the global economy. This paper attempts to understand the impact of the initiative on China’s trading partners. This paper looks at the gravity estimates of China's trade partner countries before joining the OBOR initiative using data from 2007 to 2012, and compares it with the gravity estimates after joining the initiative using the data from 2013 to 2017. Initially, this paper looks at the textbook gravity model, which only takes into account GDP and distance between two countries. The add-ons are later added to evaluate the specific impact of policy changes introduced by the OBOR initiative.

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macroeconomics, OBOR, trade

Evaluating the Impact of One Belt One Road Initiative on the Gravity Estimates of Partner Countries