Empirical nexus between Chinese investment under China–Pakistan Economic Corridor and economic growth: An ARDL approach

• DOI: 10.1080/23311975.2022.2032911
• Publication Date: 2022-02-15T13:12:21Z
• Authors: Sabeeh Ullah; Shahzad Hussain; Budi Rustandi Kar...; Zia Muhammad; Rosa Fitriana
• Keywords: Distributed lag; Spillover effect; Investment; Causality

This study examines the causality between Chinese Investment under China–Pakistan Economic Corridor and economic growth in Pakistan by using Autoregressive distributed lag estimation framework. For this purpose, quarterly time series data ranging from 2009 to 2018 were used. In short run, results failed establish Foreign Direct Growth, while a unidirectional was found Investment. However, of confirm that variables interest are bound together long run only when is dependent variable, indicating enhanced attracts more Pakistan. Results have important implications for economists policymakers make policies alongside China order ensure potential spillovers inflow shape infrastructure projects create domestic spillover. Moreover, insignificant effect on due real challenges faces access credit state capacity sustain growth. Therefore, it recommended government should formulate technologically demanding sectors bring diversity products increase exports.