IMPACTS OF CHINESE FOREIGN DIRECT INVESTMENT AND TRADE ON PAKISTAN’S ECONOMIC GROWTH (2013-2023)
DOI:
https://doi.org/10.18623/rvd.v23.5090Palabras clave:
China, Pakistan, FDI, Trade, Economic DevelopmentResumen
Foreign direct investment (FDI) is often regarded as a primary catalyst for global economic integration. FDI and trade are likely seen as crucial determinants of economic development in emerging nations such as Pakistan. This article aims to examine the impact of Chinese FDI and trade on Pakistan's economic development from 2013 to 2023. The research employs time series data from 2013 to 2023. And the secondary sources are employed utilizing qualitative approaches to track the outcomes. The findings of the research indicate that Chinese FDI and Trade have a favourable influence on the economic development of Pakistan. Chinese foreign direct investment (FDI) and trade in Pakistan have substantially contributed to economic development by infusing capital, introducing advanced technologies, enhancing productivity, generating employment, and augmenting export potential, thereby promoting overall economic growth, particularly in sectors such as energy, telecommunications, and construction; however, attracting and effectively utilizing FDI continues to face challenges for the country due to issues such as political instability, terrorism and regulatory obstacles.
Citas
Amna, N. (2024). Socio-Political and economic impacts of China-Pakistan economic corridor (CPEC) on the region: A case study of CPEC (Master's thesis, Norwegian University of Life Sciences).
Anwar, S. U., Yuan, P. Z., Wuyi, Z., Amir, S. M., Rehman, S. U., Yang, L., & Shah, S. Z. A. (2024). Nexus among the perceived infrastructural, social, economic, and environmental impact of CPEC: A case of Pakistan. Heliyon, 10(13).
Cadilhe, J. P. C. D. C. (2023). Perspectives on progress: Unraveling the CPEC within China's Belt and Road Initiative (Master's thesis). https://repositorio.iscte-iul.pt/handle/10071/29972
Chenery, H. and Srinivasan, T. N. (1989). Handbook of development economics. Geneva: Challenge of Development.
Hasan, S. M., Ali, H., Azmat, F., & Raza, S. (2020). Economic assessment of CPEC: the case of a power project. China’s Belt and Road Initiative in a Global Context: Volume II: The China Pakistan Economic Corridor and its Implications for Business, 41-73.
Hausmann, R. and Rodrik, D. (2013). Economic Development as Self-Discovery,” Journal of Development Economics, 72, 603-620.
Husnain, G. (2021). Governance of cross border regions and SEZs: the case of Gwadar under China-Pakistan economic corridor (CPEC). https://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/2988
Hussain, S., Rafiq, M., Quddus, A., Ahmad, N., & Pham, P. T. (2021). China-Pakistan economic corridor: Cooperate investment development and economic modernization encouragement. Journal of Contemporary Issues in Business and Government.
Kamal, M. A. et al., (2019). Does the quality of institutions in host countries affect the location choice of Chinese OFDI: Evidence from Asia and Africa? Emerging Markets Finance and Trade, 56(1), 208-225.
Kataria, J. R., & Riaz, A. (2020). Pakistan-China social and economic relations. South Asian Studies, 29(2).
Khan, M. A., Dogar, M., & Khalid, M. (2024). 12. Infrastructural development under CPEC and its impact on Pakistan’s agricultural landscape. 21st Century Landscape Sustainability, Development and Transformations: Geographical Perceptions, 238.
Lavingia, S. (2021). Attracting foreign direct investment in Pakistan: The role of governance, national security and global investment trends. https://digitalcommons.oberlin.edu/cgi/viewcontent.cgi?article=1234&context=honors
Lipsey, R. E. (2002). Home and host country effects of FDI. Sweden: Lidingo.
Mahmood, A. (2023). Revisiting Pakistan's Energy Crisis and CPEC Power Projects: Prospects, Challenges, and Remedies for Energy, Environmental, and Debt Sustainability. Journal of Professional Research in Social Sciences, 10(2), 1-23.
Malik, A. R. (2017). The Pakistan-China Bilateral Trade. Strategic Studies, 37(1), 66-89.
Mustafa, A., & Qayyum, A. (2016). Impact of technical barriers to trade on trade between China and Pakistan. The Pakistan Development Review, 235-250.
Pakistan Muslim League (Nawaz). National Agenda for Real Change: Manifesto 2013. https://pmo.gov.pk/documents/manifesto.pdf
Rafiq, A. (2017). The China-Pakistan Economic Corridor: Barriers and Impact. Washington, DC: United States Institute of Peace. https://www.usip.org/publications/2017/10/china-pakistan-economiccorridor
Rafiq, A. (2022). The China-Pakistan Economic Corridor: Barriers and Impact, (Washington, DC: United States Institute of Peace, October 2017), https://www.usip.org/publications/2017/10/china-pakistan-economiccorridor
Rathore, M. P. K., Mahesar, M. A., & Rathore, M. H. (2023). Pakistan and global economy. Integrated Business and Financial Studies, 1(02), 17-36.
Rodrik, D. (2011). The globalization paradox: why global markets, states, and democracy can't coexist. Oxford University Press.
Santander Trade. “Pakistan: Foreign Investment”. https://santandertrade.com/en/portal/establish-overseas/pakistan/investing#:~:text=The%20financial%20sector%20is%20the,have%20stepped%20up%20their%20investments
Shah, S. H. and Jiang, L. J. (2014). Does Chinese investment contribute to the US economy? An analysis of selected US states’ growth, employment and exports. Brazilian Journal of Business Economics, 14(1), 7–20.
Shah, S. H., Kamal, M. A., & Yu, D. L. (2022). Did China‐Pakistan free trade agreement promote trade and development in Pakistan? International Journal of Finance & Economics, 27(3), 3459-3474.
Sun, H. (1998). Macroeconomic impact of direct foreign investment in China: 1979–96,” The World Economy, 21(5), 675-690.
Talat, A. and Anwar, Z. (2013). Foreign Direct Investment (FDI) in Pakistan: Measuring impact of cost of war against terrorism, political instability and electricity generation,” Caspian Journal of Applied Sciences Research, 2(3), 117-132.
Tarzi, S. (2005). Foreign direct investment flows into developing countries: Impact of location and government policy. The Journal of social, political, and economic studies, 30(4), 497.
Yaseen, Z., Afridi, M. K., & Muzaffar, M. (2017). Pakistan and Chinas Strategic Ties: Challenges and Opportunities in Trade Perspective. Global Regional Review, 2(1), 16-30.
Zaman, K., Shah, I. A., Mushtaq Khan, M., & Ahmad, M. (2012). Macroeconomic factors determining FDI impact on Pakistan's growth. South Asian Journal of Global Business Research, 1(1), 79-95.
Descargas
Publicado
Cómo citar
Número
Sección
Licencia
I (we) submit this article which is original and unpublished, of my (our) own authorship, to the evaluation of the Veredas do Direito Journal, and agree that the related copyrights will become exclusive property of the Journal, being prohibited any partial or total copy in any other part or other printed or online communication vehicle dissociated from the Veredas do Direito Journal, without the necessary and prior authorization that should be requested in writing to Editor in Chief. I (we) also declare that there is no conflict of interest between the articles theme, the author (s) and enterprises, institutions or individuals.
I (we) recognize that the Veredas do Direito Journal is licensed under a CREATIVE COMMONS LICENSE.
Licença Creative Commons Attribution 3.0
