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China–Pakistan Economic Corridor, Logistics Developments and Economic Growth in Pakistan

Author

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  • Zunaira Khadim

    (Department of Economics, National College of Business Administration & Economics, Lahore 54660, Pakistan
    Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal 57000, Pakistan)

  • Irem Batool

    (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal 57000, Pakistan)

  • Muhammad Bilal Lodhi

    (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal 57000, Pakistan)

Abstract

The study aims to analyze the impact of China–Pakistan Economic Corridor (CPEC) logistics-related developments on economic growth in Pakistan. The study defined a Cobb–Douglas type of research framework in which the country’s real income level relates to four factor inputs, e.g., employed labor force, logistics development, financial development, and energy consumption in an economy. The study utilized the time series data set for the period 1972–2018. To estimate the long run relationship and short run adjustment mechanism, the study used Johansen’s method of co-integration and error correction model. Estimated results showed that the country’s logistics developments have a significant positive impact on economic growth in both the long run and the short run. It implies that China–Pakistan collaborative efforts for logistics developments will have a strong positive impact on economic growth in Pakistan.

Suggested Citation

  • Zunaira Khadim & Irem Batool & Muhammad Bilal Lodhi, 2021. "China–Pakistan Economic Corridor, Logistics Developments and Economic Growth in Pakistan," Logistics, MDPI, vol. 5(2), pages 1-15, June.
    • Handle: RePEc:gam:jlogis:v:5:y:2021:i:2:p:35-:d:570124
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