Driving Factors of Agricultural Virtual Water Trade between China and the Belt and Road Countries

2019 
China proposed the Belt and Road Initiative (BRI), an unprecedented development strategy in terms of scope and scale, to increase the connectivity with the rest of the world by infrastructure development and trade activities. Recently, more attention has been directed to the environmental implications of the international trade activities under this initiative, which contributes to the development of a green, i.e. environmentally friendly, partnership. This study examines the evolution of virtual water trade in relation to agricultural products between China and BRI countries during 2000–2016. The Logarithmic Mean Divisia Index (LMDI) method is adopted for uncovering the driving factors underlying the trade imbalance, as well as the major virtual water exports. Results reveal that China has experienced the shift from a net virtual water exporter to a net importer. At the regional level, Southeastern Asia and Southern Asia are the major net virtual water exporters to China, and Eastern Asia is the major im...
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