The wider economic benefits of transport corridors: A policy framework and illustrative application to the China-Pakistan Economic Corridor

Abstract

This article discusses a new policy framework to appraise proposals of large transport infrastructure investments - transport corridors - and applies it to the China-Pakistan Economic Corridor (CPEC). The framework emphasises the need to focus appraisal on the ultimate benefits that households along a corridor and, more generally, society, can attain - such as increased consumption, better jobs and greater equity. It also emphasises the need to identify and manage trade-offs. The appraisal framework is applied to Pakistan's portion of the CPEC. Simulations suggest important heterogeneous impacts of CPEC among districts in Pakistan stemming from variations in restrictions on land use and in secondary education across connected districts.