Role of CPEC in Development of Trade, Transport and Economy of Pakistan

Abstract

The objectives of the study were to measure the efficiency in trade and transport through China Pakistan Economic Corridor (CPEC) and to ascertain efficiency in trade and economic development through developed transport infrastructures. The present study was conducted in Peshawar, Pakistan. The data was collected from the relevant developing sectors and stakeholders through CPEC including investors of Khyber Pakhtunkhwa Chamber of Commerce and Peshawar Railway Station track employees. Majority of bi-variate analysis through chi-square test result showed that there was a strong and significant association between the project of CPEC and efficiency in trade and transport in terms of economy. Similarly, a strong and significant association was found between the development of transport routes through CPEC and smooth transportation of goods and services. Furthermore, a strong and significant association was found between CPEC project and improvement in travelling potential. Similarly, a significant association was found between development in transport infrastructure and fastness and reliability in business travelling. In the same way, a significant association was found between CPEC and increase in the geographical size of the labour market. As in the chain, a strong and significant association was found between the development of transport infrastructures through CPEC and increase in labour force productivity along with an increase in the range of choice of individual and firms. This could come true that CPEC as a project would ensure smooth efficiency transportation of trade goods and services in terms of reducing time distance and cost. CPEC as a project should not be only limited to economic activities, rather it should contribute to the overall socio-economic development of the region.

China–Pakistan Economic Corridor (CPEC) development projects and entrepreneurial potential of locals

“…According to officials of the CPEC project, the significant improvement of local transport infrastructure in the shape of highways, motorways, ports, and railway lines will increase the efficiency of transport and business (Ali et al, ; Rehman et al, ). The development of transport infrastructure will not only connect the remote areas of Pakistan but also improve the link between Africa, Asia, and Europe that will attract the foreign investors (Javaid, ).…”

“…The development of transport infrastructure will not only connect the remote areas of Pakistan but also improve the link between Africa, Asia, and Europe that will attract the foreign investors (Javaid, ). Additionally, local transport infrastructure would provide easier and cost‐effective access to local and global markets, promoting national and international business that would further increase investment and productivity (Rehman et al, ). Road and transportation are important for business activities (Asomani‐Boateng, Fricano, & Adarkwa, ; Chauvet & Baptiste, ; Lizhe Wang & Chen, ).…”

“…The CPEC project will be the alternative fastest and safest route for Chinese businesses, which will reduce the distance from approximately 12,500 to CPEC is the name of several infrastructures, economic development, industrial zones, and regional connectivity projects that are presently under construction throughout Pakistan (Ahmad & Hong, 2017). Past scholars and policymakers have demonstrated that the CPEC project decreases unemployment by generating millions of employment opportunities (Ali & Qazi, 2018;Chen et al, 2018), brings in new business and provides new investment opportunities (Raza, 2018;Wajeeh & Yang, 2018), provides opportunities for large-scale business and small businesses (Rehman et al, 2018), and generates revenue for host communities .…”

“…Abid and Ashfaq (2015) proposed that with the implementation of CPEC Pakistan will be a way towards modernizing the local and the business community and will help easily access the Chinese market. The regions along the CPEC route would become more attractive as these locations will favor industries and agricultural product and services industries, and small scale and medium-sized scale business would be special beneficiaries (Abid & Ashfaq, 2015;Rehman et al, 2018); this will also attract local and international investors for economic growth and business. Furthermore, prior literature has advocated that together with government, the policies implemented will be necessary to attract individuals to invest and start a business (Sajjad, Shafi, & Dad, 2012).…”

“…Sometimes small-and medium-sized businesses do not perform well due to several reasons, which included lack of experience and infrastructure development (Esfandiar, Sharifi-Tehrani, Pratt, & Altinay, 2019). The CPEC development project significantly improves the local transportation infrastructure (Rehman et al, 2018). Krueger (1993) also proposed that the attitude of entrepreneur varies, which include lack of infrastructure and transportation that affects entrepreneurial intention.…”