IDEAS home Printed from https://ideas.repec.org/p/pid/wpaper/20235.html
   My bibliography  Save this paper

The Impact of Railway Development on Economic Growth through CPEC

Author

Listed:
  • Abida Naurin

    (Pakistan Institute of Development Economics)

  • Shahbaz Gul

    (Pakistan Institute of Development Economics)

Abstract

Transportation is one of the key ingredients used to enhance economic development. An effective railway system is essential to enhance trade and rural development and helps reduce transportation costs. One of the main objectives of CPEC (China-Pakistan Economic Corridor) is to improve transportation facilities in Pakistan, with US $8.6 billion allocated for improving Pakistan Railways (PR), indicating that a robust railway network is an essential pillar of CPEC. The current study aims to introduce railways as an industry and highlight the importance of PR in CPEC and the importance of its Gross Earning (GE) and Human Development Index (HDI) impact on economic growth from 1981 to 2019. The study also utilises the World Development Indicator, the Ministry of Railways, and the Economic Survey of Pakistan for time-series data. To make an empirical analysis, the study uses Vector Error Correction Model (VECM) to forecast better-developed railway infrastructure with economic growth.

Suggested Citation

  • Abida Naurin & Shahbaz Gul, 2023. "The Impact of Railway Development on Economic Growth through CPEC," PIDE-Working Papers 2023:5, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2023:5
    as

    Download full text from publisher

    File URL: https://file.pide.org.pk/uploads/wp-23-5-the-impact-of-railway-development-on-economic-growth-through-cpec.pdf
    File Function: First Version, 2023
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Matthew McCartney, 2018. "The China-Pakistan Economic Corridor (CPEC): Considering Contemporary Pakistan through Old-Fashioned Economics and Historical Case Studies," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 23(2), pages 19-48, July-Dec.
    2. Niloy Bose & M. Emranul Haque, 2005. "Causality Between Public Investment In Transport And Communication And Economic Growth," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(1), pages 95-106, June.
    3. Martijn R. van der Horst & Larissa M. van der Lugt, 2014. "An Institutional Analysis of Coordination in Liberalized Port-related Railway Chains: An Application to the Port of Rotterdam," Transport Reviews, Taylor & Francis Journals, vol. 34(1), pages 68-85, January.
    4. Hiroki Shin, 2014. "The art of advertising railways: organisation and coordination in Britain's railway marketing, 1860-1910," Business History, Taylor & Francis Journals, vol. 56(2), pages 187-213, March.
    5. Muhammad Shahbaz & Khalil Ahmad & A. R. Chaudhary, 2008. "Economic Growth and Its Determinants in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 471-486.
    6. Louis Thompson, 2003. "Changing railway structure and ownership: Is anything working?," Transport Reviews, Taylor & Francis Journals, vol. 23(3), pages 311-355.
    7. Ruhe Xie & Haibo Chen & Chris Nash, 2002. "Migration of railway freight transport from command economy to market economy: The case of China," Transport Reviews, Taylor & Francis Journals, vol. 22(2), pages 159-177, January.
    8. Cootner, Paul H., 1963. "The Role of the Railroads in United States Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 23(4), pages 477-521, December.
    9. Jens Parbo & Otto Anker Nielsen & Carlo Giacomo Prato, 2016. "Passenger Perspectives in Railway Timetabling: A Literature Review," Transport Reviews, Taylor & Francis Journals, vol. 36(4), pages 500-526, July.
    Full references (including those not matched with items on IDEAS)

    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. Raza, Syed Ali & Sabir, Muhammad Sarwar & Mehboob, Farhan, 2011. "Capital inflows and economic growth in Pakistan," MPRA Paper 36790, University Library of Munich, Germany.
    2. Muhammad Shahbaz & Qazi Muhammad Adnan Hye & Muhammad Shahbaz Shabbir, 2013. "Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(10), pages 113-124, October.
    3. Maurice CATIN, 2023. "Sur François Perroux et l’économie régionale, pôles de croissance et de développement dans les années 1950-1970," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 57, pages 167-173.
    4. Paulsen, Mads & Rasmussen, Thomas Kjær & Nielsen, Otto Anker, 2021. "Impacts of real-time information levels in public transport: A large-scale case study using an adaptive passenger path choice model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 148(C), pages 155-182.
    5. Paul Amos & Lou Thompson, 2007. "Railways in Development : Global Round-Up 1996-2005," World Bank Publications - Reports 11768, The World Bank Group.
    6. Gertjan Driessen & Mark Lijesen & Machiel Mulder, 2006. "The impact of competition on productive efficiency in European railways," CPB Discussion Paper 71.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Paul Amos & Lou Thompson, 2007. "Railways in Development : Global Round-Up 1996-2005," World Bank Publications - Reports 11769, The World Bank Group.
    8. Mohammad Mafizur Rahman & Muhammad Shahbaz, 2013. "Do Imports and Foreign Capital Inflows Lead Economic Growth? Cointegration and Causality Analysis in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 59-81, March.
    9. Bart Wiegmans & Behzad Behdani, 2018. "A review and analysis of the investment in, and cost structure of, intermodal rail terminals," Transport Reviews, Taylor & Francis Journals, vol. 38(1), pages 33-51, January.
    10. Ajoy Ketan Sarangi & Rudra Prakash Pradhan, 2020. "ICT infrastructure and economic growth: a critical assessment and some policy implications," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 363-383, December.
    11. Bai, Xue-jie & Zeng, Jin & Chiu, Yung-Ho, 2019. "Pre-evaluating efficiency gains from potential mergers and acquisitions based on the resampling DEA approach: Evidence from China's railway sector," Transport Policy, Elsevier, vol. 76(C), pages 46-56.
    12. Jesper Bláfoss Ingvardson & Jonas Kornerup Jensen & Otto Anker Nielsen, 2017. "Analysing improvements to on-street public transport systems: a mesoscopic model approach," Public Transport, Springer, vol. 9(1), pages 385-409, July.
    13. Alfredo M. Pereira & Jorge M. Andraz, 2012. "On The Economic Effects Of Investment In Railroad Infrastructures In Portugal," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(2), pages 79-107, June.
    14. Nawaz, Kishwar & Lahiani, Amine & Roubaud, David, 2019. "Natural resources as blessings and finance-growth nexus: A bootstrap ARDL approach in an emerging economy," Resources Policy, Elsevier, vol. 60(C), pages 277-287.
    15. Meloni, Carlo & Pranzo, Marco & Samà, Marcella, 2021. "Risk of delay evaluation in real-time train scheduling with uncertain dwell times," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    16. Mehmet Aldonat Beyzatlar & Müge Karacal & Ý. Hakan Yetkiner, 2012. "The Granger-Causality between Transportation and GDP: A Panel Data Approach," Working Papers 1203, Izmir University of Economics.
    17. Hartleb, J. & Schmidt, M.E. & Friedrich, M. & Huisman, D., 2019. "A good or a bad timetable: Do different evaluation functions agree?," ERIM Report Series Research in Management ERS-2019-002-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. Tessmann, R. & Elbert, R., 2022. "Multi sided platforms in competitive B2B networks with varying governmental influence – a taxonomy of Port and Cargo Community System business models," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 132320, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. Álvaro Costa & Carlos Oliveira Cruz & Joaquim Miranda Sarmento & Vitor Faria Sousa, 2021. "Empirical Analysis of the Effects of Ownership Model (Public vs. Private) on the Efficiency of Urban Rail Firms," Sustainability, MDPI, vol. 13(23), pages 1-14, December.
    20. Tiwari, Aviral Kumar & Shahbaz, Muhammad, 2010. "Does financial development increase rural-urban income inequality? Cointegration analysis in the case of Indian economy," MPRA Paper 27093, University Library of Munich, Germany.

    More about this item

    Keywords

    Railway Development; Economic Growth; CPEC;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pid:wpaper:2023:5. 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: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.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.