The Political Economy of Transformative Globalization: Evidence From BRI Participating Countries Using Panel Quantile Regression

ABSTRACT This study examines the effects of transformative globalization on welfare and income distribution using an extensive dataset encompassing 23 Belt and Road Initiative (BRI) participating countries from 2010 to 2020. We conducted a comprehensive data analysis using quantile regression and the Generalized Methods of Moments (GMM), ensuring the robustness and reliability of our findings. The study finds that income and wealth inequality decline as countries integrate into the BRI, highlighting the role of transformative globalization in promoting equity. The impact is more pronounced in the upper percentiles, suggesting a more significant equalizing effect among wealthier segments. Quantile regression analysis reveals that, while globalization positively affects overall welfare, middle‐income groups experience the most significant gains. This underscores the particularly favorable impact of transformative globalization on the well‐being of middle‐income individuals, contributing to a more equitable distribution of resources and improved human welfare across societal strata. These findings will be of interest to policymakers and researchers examining the distributional dimensions of BRI participation. The study provides valuable insights into how transformative globalization, through the BRI, can lead to more equitable income and wealth distribution and enhance human welfare, with a distinctive emphasis on its differential impacts across various income groups. Related Articles Chang, Y. Y. 2023. “China Beyond China, Establishing a Digital Order With Chinese Characteristics: China's Growing Discursive Power and the Digital Silk Road.” Politics & Policy 51, no. 2: 283–321. https://doi.org/10.1111/polp.12524 . Duggan, N. 2020. “China—The Champion of the Developing World: A Study of China's New Development Model and Its Role in Changing Global Economic Governance.” Politics & Policy 48, no. 5: 836–858. https://doi.org/10.1111/polp.12377 . Fong, W., and N. Sakib. 2021. “A ‘Good’ Country Without Democracy: Can China's Outward FDI Buy a Positive State Image Overseas?” Politics & Policy 49, no. 5: 1146–1191. https://doi.org/10.1111/polp.12428 .