Cross‐border analysis of China– Pakistan Economic Corridor development project and local residence quality of life

• DOI: http://doi.org/10.1002/pa.2022
• Published date: 01 May 2020
• Author: Abdul Hameed Pitafi,Shamsa Kanwal,Naseer Abbas Khan,Mudaser Ahmad,Muhammad Kashan Surahio,Syed Muhammad Ali
• Date: 01 May 2020

ACADEMIC PAPER

Cross-border analysis of China–Pakistan Economic Corridor

development project and local residence quality of life

Shamsa Kanwal

1

| Abdul Hameed Pitafi

2

| Mudaser Ahmad

3

|

Naseer Abbas Khan

1

| Syed Muhammad Ali

2,4

| Muhammad Kashan Surahio

2

1

School of Public Affair, University of Science

and Technology of China (USTC), Hefei, China

2

School of Management, Hefei University of

Technology (HFUT), Hefei, China

3

Department of Computer Science and IT, The

Islamia University of Bahawalpur, Bahawalpur,

Pakistan

4

Department of Engineering Management,

National University of Sciences and

Technology, Islamabad, Pakistan

Correspondence

Abdul Hameed Pitafi, Hefei University of

Technology (HFUT), Hefei, China.

Email: hameedpitafi@hotmail.com

Funding information

Chinese Scholarship Council (CSC)

China–Pakistan Economic Corridor (CPEC) is a megaproject, which directly and indi-

rectly benefits the local community of two countries, namely, Peoples' Republic of

China and Pakistan. The purpose of current research is to investigate the impact of

CPEC development on the quality of life of local residents in China and Pakistan. We

intend to investigate the perceptions of local community related to CPEC develop-

ment, as policymakers of both countries argue the CPEC to be equally beneficial for

the people of China and Pakistan. To test the proposed hypotheses, we collected pri-

mary data through a research survey conducted in Pakistan and China. In total,

410 Chinese respondents and 480 Pakistani respondents were included in the study.

Most of the hypotheses were supported in both studies showing the positive attitude

of the people of both communities towards CPEC project. Specifically, the perceived

impact of CPEC has shown a significant effect on employment and quality of life in

both samples. This research provides important suggestions and recommendations.

1|INTRODUCTION

China–Pakistan Economic Corridor (CPEC) is a huge foreign invest-

ment in Pakistan with an estimated initial amount of 46 billion USD,

which has now increased at 62 billion USD (Kanwal, Chong, & Pitafi,

2019b). CPEC development involves a huge infrastructure develop-

ment in the form of motorways, highways, railways, education institu-

tions, energy projects, and industrial zones (Sial, 2014). According to

policymakers, CPEC is important for both countries, namely, Pakistan

and Peoples' Republic of China as it will connect both the countries to

other parts of the world such as Europe, Central Asia, and Africa (Ali,

2015b). Currently, Pakistan is facing several challenges including poor

economy; CPEC project is therefore aimed at generating millions of

employment opportunities, businesses, and education opportunities,

which will improve the living standard of the local community in

Pakistan. Specifically, CPEC project carries multifaceted objectives for

both the countries (Kanwal, Chong, & Pitafi, 2019a). For example,

Pakistan may overcome its problems through the investment of CPEC,

whereas China may increase its reach to other world, specifically

Europe, Central Asia, and Africa. On the other hand, CPEC route will

connect Gwadar Port in Baluchistan province of Pakistan to the

Xinjiang province of in China; this is likely to result in the development

of Xinjiang province as well as it will enhance the overall Chinese

economy in increasing its export to other parts of the world. Through

CPEC project not only China will have an opportunity to increase its

export efficiency to Europe, Africa, and Central Asia, but China will

also be able to quickly import oil for its industry (Kanwal, Chong, &

Pitafi, 2019b).

Chinese officials are focusing on enhancing their economy and

searching for new global markets and investment opportunities all

over the world (Kanwal, Chong, & Pitafi, 2019b). Despite the several

benefits of CPEC for local residents of both the countries, studies

related to CPEC are limited in the literature (Ali, Mi, Shah, Khan, &

Imran, 2017; Kanwal, Chong, & Pitafi, 2019a). Specifically, the impact

of CPEC project on local community quality of life (QOL) has not been

investigated yet, the current study is, therefore, an effort to address

this relationship.

Past research has established a relationship between local commu-

nity living standard and tourism infrastructure development

(Khadaroo & Seetanah, 2007; Nazneen, Xu, & Din, 2019; Yoon,

Received: 19 May 2019 Revised: 17 August 2019 Accepted: 2 September 2019

DOI: 10.1002/pa.2022

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