Subnational response differences on the Belt and Road Initiative policy and firm internationalization: A longitudinal and multi-level approach

China’s “Belt and Road” Initiative (BRI) has been regarded as an important measure of all-round opening-up in the new era. However, in practice, the level of internationalization differs significantly across firms located in different Chinese provinces. Provisional policy responses to the BRI create varied conditions for internationalization, yet research thus far has overlooked these subnational differences. We pioneered quantitative measures of formal and informal provincial policy responses to the BRI and tested their impact on firm internationalization in a multi-level design with panel data. We found significant differences in provincial governments’ formal and informal responses, with both significantly impacting firm internationalization. Interestingly, the status of being listed as a key province targeted for development in the BRI does not add further positive conditions for internationalization; we explore the reasons for this in the discussion. This manuscript contributes to our understanding of subnational differences in local government policy responses to the BRI and their impact on firms’ internationalization.