Abstract
The notion of globalization is generally developed around the synchronization of domestic and global resources. This concept is based on three pillars, that is, integration, convergence and cohesiveness. This leads toward the higher level of liberalization of economies, interrelated synchronization and high level of integration among countries. After the financial crisis in 2007, this concept has lost its strategic importance that it has been pertaining for decades which shifted the trade dynamics and interest of financial analysts toward the regional connectivity, alliance and integration. However, the concept of regional connectivity and alliances, that is, Belt and Road Initiative (BRI), emerged in 2013. The main objectives of BRI were to eliminate trade barriers, create business and investment opportunities, encourage mutual trade cooperation and promote free trade for all allies of BRI. These objectives would be achieved through infrastructure development like construction of roads, rail and ports projects and promotion of services like banking, logistics, finance and other professional services. The study deliberates upon to investigate the enablers and pillars of globalizations as well as BRI and to address the question, ‘what explains the differences in positioning and importance of globalizations and BRI?’ For this purpose, we divide this chapter into three parts: (a) financial integration, (b) capital market convergence and (c) trade cohesiveness. On the flip side, what kind of changes are being brought out in the domain of financial and project management due to these three interrelated concepts? This chapter is a way forward to explore that how this emerging concept will sustain in highly integrated market and obtain desired outcomes.
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Notes
- 1.
The Pakistan Stock Exchange sold 40% shares to the Chinese consortium (China Financial Futures Exchange Company Limited, Shanghai Stock Exchange and Shenzhen Stock Exchange). The value of the transaction was Rs. 8.96 billion (roughly $85 million). Through this transaction, the foreign investors will bring investment, skills, technological assistance and develop new products.
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Wahid, A., Mumtaz, M.Z., Kabylinskii, B., Ashkanani, F.A. (2019). Strategic Change in the Dynamics of Regional and Global Financial Integration Following the BRI. In: Syed, J., Ying, YH. (eds) China’s Belt and Road Initiative in a Global Context. Palgrave Macmillan Asian Business Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-14722-8_7
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