Governance and Management Review, Vol 3, No 2 (2018)

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DOES CPEC BRING SPILLOVERS FOR SOCIO-ECONOMIC CONDITIONS?

Adeel Kadri

Abstract


Infrastructure development is an essential component for sustainable development. Roads connectivity not only improves the travel facilities it has a huge positive spillover on surrounding districts. Socio economic conditions and infrastructure development has a positive correlation. China Pakistan Economic Corridor (CPEC) is considered game changer for Pakistan. Not only it improves the connectivity across region but the government is anticipating its positive spillover effect for zone of influence. The study would simulate impact of CPEC (Six districts in central route) on education and health conditions in zone of influence. Probit-simulation models based on micro accounting technique would be used to simulate the effect. Household dataset of Pakistan Standard of Living Measurement (PSLM) would be used for the simulation. The study found a very significant rise in all primary, middle and high school enrollment. The improved connectivity would equally help in uplifting the health services (LHW) utilization. 15.2% increase in LHW utilization would be observed in district Bhakkar. The findings of the study identified the impact of CPEC on education and health sector in six districts of central route and help policy makers to streamline the spillover to attain the maximum out of this game changer. 

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