Abstract

This paper investigates the local community support for the China Pakistan Economic Corridor (CPEC) using the lens of social exchange theory. The study examines the direct effect of social, economic, cultural, and environmental factors on the local community support for CPEC projects, and the resultant impacts on the development and sustainability of the rural economy of Pakistan. The study also explores the moderation effect of media influence on shaping positive perceptions of CPEC among the local populace. The local communities at the CPEC route which are affected or can be affected by the project were targeted for data collection using a structured questionnaire. The collected valid data (N = 259) were thoroughly analyzed by obtaining reliability and validity statistics, a correlation matrix, multiple regression, moderation analysis, and hypotheses testing. Our results substantiate that the local community support for the CPEC project is heavily dependent on social, economic, cultural, and environmental factors and that there is a positive influence of media impact as an opinion-maker in the local community regarding the CPEC. The CPEC is expected to develop the rural economy, particularly through improvements in agriculture and allied activities, thereby providing livelihoods and income-generating opportunities to the rural masses. The article is important for regulators, the CPEC authority, government bodies, and the relevant community.

Highlights

  • The result of the current study suggested that, based on the collected data, China Pakistan Economic Corridor (CPEC) will be very significant for the local residents of Pakistan, and will affect their lives socially, culturally, and economically

  • In concordance with a recent study by Qianqian and Yijun [15], we found that the local media has a massive role in shaping perceptions of the CPEC project in Pakistan

  • The empirical data from 259 members from the local community residing at the routes of the CPEC were used for data analysis

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Summary

Introduction

The local populace in Pakistan has different views about the projects launched through the China Pakistan Economic Corridor (CPEC). The local areas’ infrastructure exhibits a picture of the socio-economic fabric, and such facilities represent a sign of the country’s development. Besides other socio-economic benefits, the project mainly contributes to the promotion of education, health, and energy [1]. CPEC is an offshoot of the Chinese. President’s ambitious idea, known as the one belt one road (OBOR) initiatives, that include multiple sub-projects with neighboring countries [2,3]. The friendship between China and Pakistan is considered crucial for both countries, as both countries have mutual political and economic interests for the development of the region [4,5].

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