Support for China–Pakistan Economic Corridor development in Pakistan: A local community perspective using the social exchange theory

Abstract

China and Pakistan have initiated a mega project with the name of China–Pakistan Economic Corridor (CPEC). This study examines how local residence support of CPEC is shaped in Pakistan. This study employs a social exchange theory to explain how perceived impacts affect an individual's level of support for CPEC development. Findings reveal that social exchange theory fits the data well by confirming that the more residents perceive impacts positively, the more they are likely to support CPEC. Data were collected online using the Google platform from 280 citizens, residing in all provinces of Pakistan. Findings of this study validate most of the hypothesis. Positive impact shows significant effect on personal benefit and support for CPEC development. Similarly, personal benefit also shows significant effect on support for CPEC development. However, negative impact shows insignificant effect on personal benefit and support for CPEC development. Findings of this study will guide the government officials and policymakers of CPEC about the perception of local people residence, both positive and negative impact. Policymakers can use the findings of this study to gain local citizen's support for the CPEC development projects and designs policies accordingly for the future projects.