The Relationship Between Foreign Investment and Subjective Well-Being: The Case of the China-Pakistan Economic Corridor

Maria Qayum; Shanza Qayyum; Muhammad Noman; Ismat Ara Jarin

doi:10.64060/ICPP.08

Authors

Maria Qayum School of Economics & Management, China Three Gorges University, Yichang City 443002, China Author https://orcid.org/0009-0003-7214-7300
Shanza Qayyum School of Economics and Management, Zhengzhou University, China Author https://orcid.org/0009-0009-5731-5891
Muhammad Noman School of Economics and Management, Zhengzhou University, China Author https://orcid.org/0000-0002-9359-229X
Ismat Ara Jarin School of Basic Medical Sciences, China Three Gorges University, Yichang City 443002, China Author https://orcid.org/0009-0007-4543-0118

DOI:

https://doi.org/10.64060/ICPP.08

Keywords:

Foreign Investment, China-Pakistan economic corridor, Community wellbeing, social-wellbeing, public perceptions, PLS-SEM analysis

Abstract

China and Pakistan have maintained significant bilateral commercial and mutually beneficial relationships throughout history. The China-Pakistan Economic Corridor (CPEC) is a multifaceted growth strategy that revolves around several unique initiatives. The Chinese government anticipates investing a significant amount in the CPEC on multiple projects in general. In today's globalized environment, CPEC is a strategy for ensuring economic prosperity for both countries and is seen as an important breakthrough in this area. To examine the CPEC operational scenario, its confines, difficulties, and advantages, the mutually beneficial economic connection between China and Pakistan was extensively studied in this paper. To compare the general public's opinion of it with intended public perceptions, an empirical approach was employed. To examine the general public's opinions of it with a focus on public perceptions of foreign investment, an empirical approach was used. A PLS-SEM analysis aimed at improving the community well-being of Pakistan. The findings of the PLS-SEM direct pathway testing showed that IV and DV have a direct association, supporting the accepted hypotheses H1–H6. We also weigh up the respondents’ respective educational attainment together with gender as controlling variables; however, the results for both of these factors revealed no correlation in opposition to CPEC. This proves categorically that there is no relationship between the DV and either gender, education, or both. In this study, H1a, H2a, H4a, H5a, and H6a had significant associations in relation to age in the role of a moderator, although further moderators did not exhibit significant associations to some extent. Age substantially moderates the correlation between CPEC and IV, illustrating the moderating effect of age on the association. All factors in the present investigation are subject to a considerable relationship with one another; furthermore, a number of them have an intermediate to high correlation with one another. The research carried out demonstrated that CPEC has the potential for significant beneficial socioeconomic implications for the two nations, while the Pakistani public believes it will provide them with several opportunities for long-term social sustainability. The results of this research will aid decision-makers in formulating policies that are more efficient and support sustainable development.

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