The Economic Impact of the China-Pakistan Economic Corridor: an Empirical Study of China’s FDI To Pakistan

Yanzhe Zhang, Jian Zhang () and Mutong Zhao
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Yanzhe Zhang: Northeast Asian Research Center of Jilin University
Jian Zhang: International Relations of Liaoning University
Mutong Zhao: Northeast Asian Studies College, Jilin University

Public Organization Review, 2025, vol. 25, issue 3, No 42, 1705-1724

Abstract: Abstract This paper examines the impact of China's foreign direct investment on Pakistan's economic development. The study draws on statistical data from authoritative sources such as the World Bank's Global Development Indicators and the International Monetary Fund. The cointegration analysis and the Error Correction Model are employed to investigate both long-term equilibrium and short-term adjustment dynamics between FDI and macroeconomic variables. This research provides valuable insights into how Chinese investment contributes to economic growth in recipient countries and offers policy implications for other developing nations aiming to promote shared prosperity and sustainable development through equitable and mutually beneficial partnerships.

Keywords: China–pakistan economic corridor (CPEC); Chinese FDI; Economic growth; Error correction model (ECM); Granger causality test (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11115-025-00909-x

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