CPEC in the Perspective of Pakistan Economy: A Comprehensive Analysis

Authors

Ishtiaq Ahmad Ishtiaq Ahmad Other articles by this author , Ali Azam Ali Azam Corresponding author Email addressali.azam@iub.edu.pk Other articles by this author , Shehzad Hussain Shehzad Hussain Other articles by this author

https://doi.org/10.36923/jcmi.v1i1.450

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Abstract

China Pakistan Economic Corridor (CPEC) is a part of multidimensional infrastructural initiative known as ‘Belt and Road Initiative (BRI) which attempts to bond economies, regimes and societies in Europe and Asia. In this background, objective of this study is to analyze CPEC in the light of Pakistan economy. Vector Autoregressive (VAR) model, Vector Error Correction Mechanism (VECM) and Granger Causality are applied to data from 1980 to 2016 for discovering interactions of infrastructure and sustainable development. In the long run, causality runs from economic and social component of sustainable development to infrastructure. However, in the short run, energy infrastructure has a causal connection with sustainable development and its economic component. Short run associations of past is found to have the force to enlarge future responses. The statistical context of this study, as a constraint, is not sufficient to highlight any association between infrastructure and environment.

Article information

Keywords
CPEC, sustainable development, infrastructure, vector error correction, granger causality
Section
Articles
Issue
Vol. 1 No. 1 (2020)
Submitted
October 12, 2022
Published
June 1, 2020
Corresponding author
Ali Azam
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