An Analysis of Trade Between Belt and Road Initiative and Regional Comprehensive Economic Partnership Countries in Context of Regional Trade Agreements

This study investigates the nuanced relationship between globalisation and regional trade agreements (RTAs) in fostering international trade among belt and road initiative (BRI) nations and Regional Comprehensive Economic Partnership (RCEP) countries between 1999 and 2019. This research uses a structural gravity model with ordinary least squares (OLS) and Poisson Pseudo Maximum Likelihood Model (PPML) estimation techniques. The findings highlight the need to pair RTAs with globalisation-friendly policies to create fair and inclusive trade systems. Improving infrastructure like roads, ports and digital networks, along with advancing technology, can help member nations maximise their trade potential. Policymakers should focus on reducing gaps, such as poor transportation or limited internet access, that hinder some countries from fully benefiting. Addressing these issues not only makes trade more efficient but also ensures that the advantages of RTAs are shared more equally. Over time, these efforts can drive sustainable economic growth by boosting industries, creating jobs and improving living standards across participating nations.JEL Codes: F1, F6, F15, F17, C23