The Eurasian Land Bridge: linking regional value chains along the New Silk Road

an article by Richard Pomfret (University of Adelaide, Australia) published in Cambridge Journal of Regions, Economy and Society Volume 12 Issue 1 (February 2019)

Abstract

This article argues that the establishment of the China–Europe Land Bridge predated the announcement of China’s One Belt One Road (Belt and Road Initiative) and has been market-driven, as service providers identified and responded to demand for efficient freight services along pre-existing railway lines.

Governments’ role was trade facilitating, that is reducing delays and costs at border crossing points, rather than investing in hard infrastructure. Service providers responded by linking European and Asian value chains (for example in automobiles and electronic goods) and reducing costs for traders shipping between China and Europe.

In sum, market forces were the catalyst for the rail links between China and Europe that are often analysed in the context of China’s economic rise and Chinese international relations.

JEL Classification: L92, F14, O18

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The Eurasian Landbridge: Linking regional value chains

a column by Richard Pomfret for VOX: CEPR’s Policy Portal



A dramatic development in the 2010s has been establishment of overland rail freight services between the EU and East Asia. This column, the first in a two-part series, look at the catalyst for the Eurasian Landbridge rail services and it's impact on trade costs. While traffic on the Landbridge is still small compared to China-EU maritime trade, there is potential for further service improvement with implications for global value chains across Eurasia.

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