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Logistic infrastructure, tax revenue and economic activities: how to finance economic corridors

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  • Muhammad Ayub Mehar

Abstract

This study provides a strong justification in favour of economic corridors in CAREC and ECO member countries. A strong and large network of economic corridors is required not only for connectivity but also for improvement in logistic performance. Based on empirical pieces of evidence, it has been noted that growth in tax revenues, enhancement in merchandising trade, and improvement in labor participation rate are the direct effects of improvement in logistic infrastructure. The external debt for the public sector has been classified as a 'Bad mode of financing' in this study because of its negative impact on corporate wealth. It suggests that international infrastructure development companies should provide bridge financing for investment in economic corridors and infrastructure development. These companies can play an intermediatory role in financing long-term macrofinancing projects. The empirical analysis is based on five years of data from 158 countries.

Suggested Citation

  • Muhammad Ayub Mehar, 2024. "Logistic infrastructure, tax revenue and economic activities: how to finance economic corridors," International Journal of Logistics Economics and Globalisation, Inderscience Enterprises Ltd, vol. 11(1), pages 21-48.
    • Handle: RePEc:ids:injleg:v:11:y:2024:i:1:p:21-48
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