Investigating the Impact of the External Environment and Benchmark Characteristics on the China-Pakistan Economic Corridor’s Construction: A COVID-19 Perspective

Abstract

The economic stability of a country, such as Pakistan is dependent on the construction of mega-projects, such as the China-Pakistan Economic Corridor (CPEC). However, certain external factors and project characteristics may delay the construction of infrastructure projects; scholars have not investigated the development of CPEC from this perspective. In addition, the COVID-19 outbreak has hindered CPEC initiatives. This analysis will examine the effect of external environment factors on CPEC, and benchmark the project’s effects on economic stability through CPEC’s development by incorporating 523 samples obtained from employees of various CPEC projects. Structural equation modeling was used to analyze all hypotheses proposed here on AMOS 21.0 tools. According to the findings of this study, the CPEC external environment and project benchmark characteristics have a negative effect on the construction of CPEC development. Furthermore, the development of CPEC is found to have a significant effect on economic stability. However, fear of COVID-19 has weakened the relationship between CPEC development and economic stability. Finally, we also discuss the implications and limitations of the study.

Exploring the China-Pakistan economic corridor project performance during Covid-19 pandemic

“…The extension of the CPEC has been found to have negative implications for economic progress. However, concerns about the COVID-19 pandemic have mitigated the intensity of the association between CPEC development and financial stability [ 17 ]. The results mentioned above align with other studies on the impact of COVID-19 on socioeconomic issues; the statewide lockdown has caused economic losses and impacted all sectors of society [ 61 ].…”

“…It continued progressing in specific sectors, such as energy projects, where some developments were completed or achieved significant milestones despite the prevailing challenges. CPEC digital and telecommunication infrastructure initiatives also gained prominence during the pandemic, facilitating remote work, education, and telemedicine [ 17 ]. Moreover, efforts were made to ensure the safety of workers and the implementation of Covid-19 protocols on project sites.…”

Assessing the Impact of Community Factors on Local Community Support for Tourism: An Empirical Investigation of the China-Pakistan-Economic Corridor

“…Access to tourist sites by road and transport services is critical for the development of tourism. Enhanced road and transport decreases travel time and costs that have a direct impact on the flow of visitors to destinations (Xu et al, 2022). On the other hand, if the chosen tourist site has poor roads and facilities, tourists can find alternative sites.…”