Tropical Geography ›› 2019, Vol. 39 ›› Issue (6): 901-910.doi: 10.13284/j.cnki.rddl.003190

Previous Articles     Next Articles

Investment Environment and Location Selection in Pakistan under the Background of “the Belt and Road”

Dong Ye1,ab, Shi Xinqi1,a2   

  1. 1. a. College of Geographic Science and Tourism; b. The Research Center of CPEC and South Asia Economics, Xinjiang Normal University, Urumqi 830054, China
    2. Farmers’ Specialized Cooperative for Planting and Breeding of Jinlin in Lintao, Lintao 730516, China
  • Received:2019-09-09 Revised:2019-10-18 Online:2019-11-10 Published:2019-12-26

Abstract:

The People’s Republic of China and the Islamic Republic of Pakistan have made a joint statement establishing an all-weather strategic partnership between the two parties. Accordingly, Pakistan has become China’s only all-weather strategic partner. The China-Pakistan economic corridor, focusing on the industrial cooperation of energy sources and the transportation infrastructure of Gwadar Port, will be built into the major project of “the Belt and Road” initiative. “The Belt and Road” initiative and the China-Pakistan economic corridor have brought new opportunities for economic and trade cooperation between the two countries. Judging from its development trend, the investment space of Chinese enterprises in Pakistan is gradually expanding. The present paper focuses on effective location choices for Chinese enterprises in Pakistan. It first investigates the overall investment environment of Pakistan from 2000 to 2018, along the dimensions of basic competitiveness, core competitiveness, and auxiliary competitiveness. The average annual growth rate of the overall investment environment was determined as 36.05%, mostly contributed by the average annual growth rate of basic competitiveness (28.32%). Therefore, Pakistan’s investment environment is constantly improving, especially in the infrastructure industry which is a favored investment choice by Chinese enterprises. Second, the study investigates the locations of existing Chinese enterprises invested in Pakistan. Most of the investment projects of Chinese enterprises are located in Sindh and Punjab. Finally, the investment locations in the main provinces and cities are divided into four groups: economic centers, border areas, areas with close social connections, and areas with high security. Punjab and Sindh are economically viable economic centers, whereas Khyber-Pashtun Province and Gwadar Port are advantageous for border areas. Areas with close social connections are best located in Karachi, Lahore, and Islamabad. Finally, Punjab and Sindh offer advantages of investment security. This paper is expected to provide a reference for Chinese enterprises choosing their future investment locations in Pakistan.

Key words: investment environment, location, Outward Foreign Direct Investment (OFDI), the Belt and Road, Pakistan

CLC Number: 

  • K901.4