Background and academic concept
Pakistan which is situated at a region which is quite significant for the world trade and therefore is also known as the gateway of the Middle East and the Central Asia which plays an important role in transit economy which provides the shortest link to China. As China is heavily dependent on the Middle Eastern nations in order to fulfil the energy requirements, it had invested $46 billion for CPEC (Summers 2016). The China Pakistan Economic border is the project which acts as an opportunity for Pakistan. Both Pakistan and China are dependent on the success of the project. CPEC has already completed its project in the initial phase. Due to the recent financial crisis there is a need for building regional infrastructure in Asia for increasing the competitiveness along with the productivity (Ali, Gang and Raza 2016). The economic corridors can act as a tool which enhances cooperation., integration and development among various countries. The corridors also aid in the enhancement of the standard of living in order to reduce poverty. The purpose of these corridors is to enable the linkage in the backward region with the developed industrial zones. As there is absence of any research work based on the public opinion there is in need of a research in order to explore the impacts through the public opinion. It can be said that the economic corridors are used as a tool for enhancing co-operation, development and integration among the various countries in order to make them active in the globalized world. Although from the reviews of the literature it can be said that the idea of development of these kinds of corridors are used for assessing the territories of Pakistan had been taken place earlier too. The relations between Pakistan and China became smoother after efforts been extended by the foreign ministers of the Pakistan by fulfilling various objectives in the interest of Republic of Pakistan (Khwaja, Saeed and Urooj 2018). The main objective of the China Pakistan Economic Corridor is to connect the Gwadar Port of Pakistan and the Kashgar port. The Kashgar port is also a famous trading hub present in Western China where seventy percent of the Chinese trade used to take place in the route of the Indian ocean. The China Pakistan Economic Corridor therefore is known to provide the link between the two parts from China to the countries of European and Middle Eastern (Summers 2016). The CPEC also provides easy access to Middle East from China. CPEC has also had a significant effect on the global trade. The study also compares the shipping costs when transported using the corridor.
Research objectives
The main objectives of the research are
- Examining the effect of economic corridor of China Pakistan on the economic aspects of Pakistan.
- Explore the impact of the China Pakistan Economic Corridor on the growth rate of the gross domestic product of Pakistan
- To find the influence of the CPEC on the reduction of poverty level with the growth of GDP.
- Verifying the influence of the CPEC on the reduction in the level of poverty in Pakistan.
H0: The economic corridor of China Pakistan will affect o the economic aspects of Pakistan
H1: The economic corridor of China Pakistan will not affect the economic aspects of Pakistan.
The question this research will be answering is to
- What extent the economic corridor of Pakistan and China will be affecting the economic growth of Pakistan?
- To what extent the economic corridor will affect the rate of growth of gross domestic product of Pakistan?
- Will the economic corridor help in reducing the level of poverty?
The purpose of the research is to find the impact of the China Pakistan Economic Corridor on the economic aspects of Pakistan. The nature of the research is exploratory. The research is also based on the public opinion. The secondary data is basically collected from the internet, books and research publications.
The approach of the research is qualitative in nature and descriptive. It used to answer the questions of the research. Comparative analysis is also been carried out and shipping costs are used in the comparative studies. The corridor is been located in the Silk Road Economic Belt.
Pakistan usually faces potential threats from other militant groups and the tribal areas. The insecurity can therefor pose serious threats for the construction of the China akistan Economic Corridor.
The China Pakistan Economic Corridor is therefore said to be the game changer for bith China and as well as China. Through the China Pakistan Economic Corridor, Pakistan will be able to overcome its short fall in the energy. New railway and infrastructure will be built by both China and Pakistan which will also help in reducing the cost and time for the common people. This will also help China to enter Persian Gulf an Indian Ocean easily. The reason behind this is that the economic activities will increase across the regions and people will be getting more economic benefits.
The research design includes information of the data along with the source and techniques which is used for the analysis along with interpretation of data. The material which is used for the research have been taken from different kinds of sources which consists of articles, books and newspaper.
The population can be anyone who had been present there from the past and participated for the interview. Usually a small size of sample is used in case of detailed understanding. The population mainly comprises of the people of Pakistan and China.
Questionnaires and secondary data are used for the methods of data collection. Questionnaires are usually given because exploring during the interviews as it is time taking.
The economic corridor of China Pakistan is a group infrastructure projects which are under the construction throughout Pakistan.
Research hypothesis
The population can be anyone who had been present there from the past and participated for the interview. Usually a small size of sample is used in case of detailed understanding.
The Corridor of the China Pakistan acts as an umbrella project and are also a component of the One Belt One Road. T6he project was initially taken place and projected by China in the year 2013. After the visit of the Chinese president in Pakistan, both sides of the country decided for enhancement of relationship towards the all-weather strategic partnership.
The scenario of China Pakistan Economic Corridor has huge importance not only in Pakistan but also in case of China. China will use this for increasing its span of control over the other countries, as well as to have secure means for future trade and for transferring of energy. Pakistan will also use this in order to decrease the energy related problems. The economic corridor of China Pakistan in under one belt and in one belt initiative of the republic of the republic of China (Bhattacharjee2015). The purpose of CPEC is to enhance global relationship which will lead to win situation through mutual cooperation. The CPEC mainly compromise of the four major sectors which includes infrastructure, energy requirements, development of the workforce and the economic progress of Pakistan.
The China Pakistan Economic Corridor is one of the latest ventures which is present in the history of bilateral economic cooperation. The central idea of the corridors is enhancing economic activities in those regions in order to generate new employment opportunities. The construction of the particular corridor is expected to change the scenario of both south western China and Pakistan which will have both direct and indirect benefits (Shaikh, Ji and Fan 2016). The development of the corridor industry will have a direct impact on the regional economy. These type of activities in the industrial sector affects the regional economy indirectly. This proposed pipeline will also solve the energy crisis of Pakistan and China.
As the projects of the CPEC are under construction, it is quite difficult for collecting the exact data. Collecting data from road transportation cost and time is also not easy as the price may increase or go down depending on numerous factors which comprised of oil prices along with demand and supply of products.
It has been found from the study the China Pakistan economic Corridor will be providing positive impacts on the prevailing energy crisis, development of roads and infrastructure along with other forms of connectivity which can become a significant reason for the enhancement of the value of currency of Pakistan (Akhtar and Ali 2016). However, then people of Pakistan state The China Pakistan Economic Corridor is also responsible for some kind of issues and unpleasant outcomes in Pakistan. Rise in unemployment on an important basis might be the reason of the China Pakistan Economic corridor in China.
Research question
The study also shows whether the China Pakistan Economic Corridor have any impact on the cost of shipping or not. In this theory the study also tries to establish the significance of the logistics in the supply chain network of the cost of shipping. The supply chain network also acts as both outbound and inbound transportation. As in case transportation one of the most valuable thing is the cost of the shipping and the time taken. The main goal of the business is to reduce the cost of the logistics and also reduce the time of delivery. The main objective of the study is to find the impact of the China Pakistan Economic corridor on the exports and imports of China. Some of the results also showed that the supply chain will be able to save around $41 billion in terms of the cost of shipping. As a result of the route of the CPEC, it is estimated that China can save up to $1400 from imports and exports (Shaukat, Ahmad and Abdullah 2017). The exporters of China will have to pay comparatively less shipping costs for which they can reduce their price of the sales. Due to the reduction of the shipping costs the cost of raw materials also decreases.
Reference list
Akhtar, N. and Ali, L., 2016. CHINA–PAKISTAN ECONOMIC CORRIDOR: BACKGROUND, EXPECTED BENEFITS AND POTENTIAL THREATS. Journal of Management Research (JMR), 2(1), pp.1-26.
Ali, S.A., Haider, J., Ali, M., Ali, S.I. and Ming, X., 2017. Emerging Tourism between Pakistan and China: Tourism Opportunities via China-Pakistan Economic Corridor. International Business Research, 10(8), p.204.
Ali, W., Gang, L. and Raza, M., 2016. China-Pakistan economic corridor: current developments and future prospect for regional integration.
Avais, M.M.A., Shaikh, M.S., Mahesar, H.A. and Memon, M.F., 2016. China-Pak Economic Corridor: Social analysis for Pakistan. The Government-Annual Research Journal of Political Science., 5(5).
Azfar, K.R.W.A.W., Shahzad, N. and Mumtaz, S., 2017. Application of Lean Agile Resilient Green Paradigm Framework on China Pakistan Economic Corridor: A Case Study. Mehran University Research Journal of Engineering and Technology, 36(3), pp.621-634.
Bhattacharjee, D., 2015. China Pakistan Economic Corridor.
Esteban, M., 2016. The China-Pakistan Corridor: a transit, economic or development corridor. Strategic Studies, 36(2), pp.63-74.
Gill, A.A. and Kausar, G., 2017. Game of hope and doubt: critical discourse analysis of pak-china economic corridor. New Horizons, 11(2), pp.1-109.
Hameed, H., 2016. Pakistans Print Media Presentation of Pakistan China Relation and New Silk Route Corridor Project (A Case Study of Chinese President Xi JinPing Visit Days). Journal of Political Sciences & Public Affairs.
Irshad, M.S., 2015. One belt and one road: dose China-Pakistan economic corridor benefit for Pakistan’s economy?.
Khwaja, M.A., Saeed, S. and Urooj, M., 2018. Preliminary Environmental Impact Assessment (EIA) Study of China-Pakistan Economic Corridor (CPEC) Northern Route Road Construction Activities in Khyber Pakhtunkhwa (KPK), Pakistan.
Lim, A.C.H., 2017. The Moving Border of the China-Pakistan Economic Corridor. Geopolitics, pp.1-16.
Makhdoom, A.S., Shah, A.B. and Sami, K., 2018. Pakistan On The Roadway To Socio-Economic Development: A Comprehensive Study Of China Pakistan Economic Corridor (Cpec). The Government-Annual Research Journal of Political Science., 6(6).
Melecky, M., Roberts, M. and Sharma, S., 2018. Wider Economic Benefits of Transport Corridors: A Policy Framework and Illustrative Application to the China-Pakistan Economic Corridor.
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