IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v10y2021i3p8-16.html
   My bibliography  Save this article

Cpec: Analyzing The Mediating Role Of Infrastructure For Regional Economic Integration

Author

Listed:
  • MUHAMMAD ABDULLAH

    (Assistant Professor of Economics at Department of Economics, University of Sahiwal, Pakistan)

  • AYZA SHOUKAT

    (Lecturer in Economics at Department of Economics, University of Sahiwal, Sahiwal.)

  • HAMID MAHMOOD

    (Ph.D. scholar in University Sultan Zainal Abidin,Kuala Teregganu, Malaysia.)

Abstract

Regional economic integration (REI) is an arrangement between the economies of common regions to encourage unrestricted trade, capital flows regional peace macroeconomic cooperation through linking infrastructure and a common set of rules. Although, REI is constituted by several factors, yet the fundamental factor in international trade. China Pakistan Economic Corridor (CPEC) is the emerging discourse among global researchers as well as policymakers in Pakistan and China. CPEC offers huge capital inflows, grand physical infrastructure projects and a flow of skilled workforce to Pakistan. Empirical evidence has proved the significant contribution of infrastructure towards economic growth yet the role of infrastructure in promoting REI is veiled. The current study postulates that CPEC can play a pivotal role while elevating REI through infrastructure development in Pakistan. we have empirically tested the data from 1972 to 2019 and used trade openness as a key indicator of REI. For infrastructure, a composite index has been formulated. Empirical analysis of our study confirms that REI is sensitive to infrastructure; infrastructure positively affects REI. Based on empirical evidence, we propose that projects under CPEC are likely to contribute positively towards increased REI. Further, the success of this project is linked with the adaptability of Pakistan with the challenges. A sound political governance is the key element for CPEC to be accomplished and deliver its fruits. Pakistan needs to focus on political harmony and consistent development policies. Besides, control over rate of rate of inflation and a suitable exchange rate can also mend the road for smoothening the process of REI.

Suggested Citation

  • Muhammad Abdullah & Ayza Shoukat & Hamid Mahmood, 2021. "Cpec: Analyzing The Mediating Role Of Infrastructure For Regional Economic Integration," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 8-16.
    • Handle: RePEc:rfh:bbejor:v:10:y:2021:i:3:p:8-16
    as

    Download full text from publisher

    File URL: https://bbejournal.com/BBE/article/view/82/48
    Download Restriction: no
    File URL: https://bbejournal.com/BBE/article/view/82
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, vol. 46(C), pages 165-175.
    2. Sulehri, Fiaz Ahmad & Ali, Amjad, 2020. "Impact of Political Uncertainty on Pakistan Stock Exchange (1990-1999): An Event Study Approach," MPRA Paper 104623, University Library of Munich, Germany.
    3. Audi, Marc & Ali, Amjad, 2019. "The Advancement in Information and Communication Technologies (ICT) and Economic Development: A Panel Analysis," MPRA Paper 93476, University Library of Munich, Germany.
    4. ŞENTÜRK, İsmail & Ali, Amjad, 2019. "Socioeconomic Determinants of Gender Specific Life Expectancy in Turkey: A Time Series Analysis," MPRA Paper 97815, University Library of Munich, Germany.
    5. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
    6. Jan, Sajjad Ahmad & Chani, Muhammad Irfan & Pervaiz, Zahid & Chaudhary, Amatul R., 2012. "Physical infrastructure and economic development in Pakistan," MPRA Paper 37785, University Library of Munich, Germany.
    7. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
    8. Asif Sajid & Amjad Ali, 2018. "Inclusive Growth and Macroeconomic Situations in South Asia: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(3), pages 97-109, September.
    9. Portugal-Perez, Alberto & Wilson, John S., 2012. "Export Performance and Trade Facilitation Reform: Hard and Soft Infrastructure," World Development, Elsevier, vol. 40(7), pages 1295-1307.
    10. Sabahat Jaleel & Naureen Talha & Zahir Shah, 2019. "CPEC and Regional Integration," Global Regional Review, Humanity Only, vol. 4(4), pages 19-28, December.
    11. Mohamad Kassem & Amjad Ali & Marc Audi, 2019. "Unemployment Rate, Population Density and Crime Rate in Punjab (Pakistan): An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 8(2), pages 92-104, June.
    12. Seethepalli, Kalpana & Bramati, Maria Caterina & Veredas, David, 2008. "How relevant is infrastructure to growth in East Asia ?," Policy Research Working Paper Series 4597, The World Bank.
    13. Benno J. Ndulu, 2006. "Infrastructure, Regional Integration and Growth in Sub-Saharan Africa: Dealing with the disadvantages of Geography and Sovereign Fragmentation," Journal of African Economies, Centre for the Study of African Economies, vol. 15(2), pages 212-244, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahmad, Shakil & Khan, Imran, 2022. "The impact of globalization, foreign direct investment and trade openness on poverty: a case study of Pakistan," Economic Consultant, Roman I. Ostapenko, vol. 37(1), pages 41-60.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fiaz Ahmad Sulehri & Usman Ahmed & Wajid Alim, 2021. "Black Economy, Financial Inclusion, Financial Liberalization Nexus: A Panel Analysis Of Developing Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 65-77.
    2. Abdul Hai Rathore & Abdullah Sahi, 2022. "The impact of Corporate Governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 34-53, August.
    3. Fayyaz Hussain & Mudassar Hussain, 2021. "The Use Of E-Resources By Humanities Scholars: A Systemic Literature Review," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 78-88.
    4. Marc Audi & Fiaz Ahmad Sulehri & Amjad Ali & Razan Al-Masri, 2022. "An Event Based Analysis of Stock Return and Political Uncertainty in Pakistan: Revisited," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 39-56, September.
    5. Ahmad Latif & Rimsha Javed, 2021. "Does Economic Growth, Population Growth And Energy Use Impact Carbondioxide Emissions In Pakistan? An Ardl Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(2), pages 85-91, June.
    6. Alim, Wajid & Ali, Amjad & Minhas, Amna Shafiq, 2022. "The Impact of Leverage on the Firm Performance: A Case of Fertilizers Sector of Pakistan," MPRA Paper 114200, University Library of Munich, Germany.
    7. Marc Audi & Razan Al-Masri & Chan Bibi, 2022. "Challenging Assumptions about Women’s Empowerment and Economic Resources and Domestic Violence among Young Married Women in India," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 23-33, August.
    8. Fiaz Ahmad Sulehri & Saba Sharif, 2022. "The Impact of Firm Sustainability on Firm Growth: Evidence from USA," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 1-15, August.
    9. Zerish Tasleem & Muhammad Hatim & Mahnoor Malik & Muhammad Nadeem & Muhammad Tariq Ramzan, 2022. "The Impact Of Health Facilities On Rural Poverty In Southern Punjab, Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 104-109, June.
    10. Arzoo Mushtaq & Shahnawaz Malik & Muhammad Hanif Akhtar, 2022. "Nonlinear Taylor Rule And Inflation-Targeting In Pakistan: A Time Series Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 185-197, June.
    11. Muhammad Ashraf & Arslan Ali Raza & Muhammad Ishaq, 2022. "A Novel Approach Of Social Media Analytics For Predicting National Consumer Confidence Index," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 220-234, June.
    12. Muhammad Hatim & Zerish Tasleem & Muhammad Nadeem, 2022. "The Influence Of Education And Health On Rural Household Poverty: A Moderating Role Of Culture In Punjab, Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 120-133, June.
    13. Shahzad Hassan & Norazah Mohd Suki, 2022. "Plea For Customer Citizenship Behaviour: Mediating Role Of Customer Engagement And Customer Perceived Stress," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 9-19, June.
    14. Warda Najeeb Jamal & Rana M. Zahid Hafeez & Owais Shafique & Razi Razzaq & Gulfam Asif & Muhammad Waqas Ashraf, 2021. "Impact Of Microcredit Finance On The Socioeconomic Status Of The Underprivileged Populace Of Punjab: Through The Mediating Effect Of Knowledge Sharing Ability And Financial And Legal Awareness," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(4), pages 113-125, December.
    15. Namra Munir & Rashid Minas Wattoo & Muhammad Latif, 2021. "Perception Of Secondary School Teachers About Parental Involvement And Students’ Academic Performance: A Comparative Study," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 110-117.
    16. Chan Bibi & Muhammad Zahid Naeem, 2021. "Climate Change and Its Impact on Cash and Food Crop Production in Pakistan: A Time Series Analysis," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 7(4), pages 31-40, December.
    17. Tariq Hussain & Ahmad Raza Ul Mustafa & Makhdum M.I. & Kaleem Ullah, 2022. "Defense Expenditures, Fiscal Deficit And Debt Servicing Nexus: A Case Study Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 74-83, June.
    18. Qasim Abbasi & Bilal Khokar, 2021. "Nexus between Gender Inequality and Income Inequality," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 7(4), pages 41-49, December.
    19. Anam Sidra, 2021. "Role Of Supply Chain Practices In Reducing Trust Deficit On E- Business In Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 247-252.
    20. Syeda Tabinda Rubab & Nadia Hanif & Syeda Ambreen Fatima Bukhari & Umer Munir & Mubasher Muhammad Kamran, 2022. "The Impact Of Financial Distress On Financial Performance Of Manufacturing Firms Listed At Pakistan Stock Exchange," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 382-391.

    More about this item

    Keywords

    CPEC; Regional economic integration;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:10:y:2021:i:3:p:8-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.