Economic corridors are integrated networks of
infrastructure
Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
within a geographical area designed to
stimulate
Stimulation is the encouragement of development or the cause of activity generally. For example, "The press provides stimulation of political discourse." An interesting or fun activity can be described as "stimulating", regardless of its physic ...
economic development
In the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and o ...
.
They connect different economic agents in particular geographic area. Corridors may be developed within a country or between countries.
[ Corridors exist in ]Asia
Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an area ...
,[ ]Africa
Africa is the world's second-largest and second-most populous continent, after Asia in both cases. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 6% of Earth's total surface area ...
,[ and other areas.
Economic corridors often feature integrated ]infrastructure
Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
, such as highway
A highway is any public or private road or other public way on land. It is used for major roads, but also includes other public roads and public tracks. In some areas of the United States, it is used as an equivalent term to controlled-access ...
s, railroad
Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
s and port
A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Ham ...
s, and may link cities or countries. Corridors may be created to link manufacturing hubs, areas with high supply and demand, and manufacturers of value-added goods. When implemented, economic corridors are often one of a package of different measures[ including infrastructure development, visa and transport agreements, and ]standardisation
Standardization or standardisation is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments. Standardization ...
. Consideration of social needs, such as housing
Housing, or more generally, living spaces, refers to the construction and assigned usage of houses or buildings individually or collectively, for the purpose of shelter. Housing ensures that members of society have a place to live, whether it ...
, is often considered.
The Asian Development Bank
The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966, which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The bank also maintains 31 field office ...
coined the term in 1998.
In practice the term "Economic Corridors" has most often been used to connote road highways (e.g. East-West Economic Corridor and Southern Economic Corridor of the Greater Mekong Subregion program (GMS)). The China-Pakistan Economic Corridor is also anchored on transport connectivity though it also includes several power plants. More recent work has emphasized the need for a clear link of the linear infrastructure (like roads) to broader, spatial economic activities. A corridor exemplifying this is the ABEC (Almaty-Bishkek Economic Corridor).https://www.almaty-bishkek.org/
Benefits
Regional integration
Economic corridors not only connect regions and countries through transportation, but also strengthens infrastructure
Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
construction by establishing industrial clusters, thereby attracting investment and developing regional economy. They are part of infrastructure
Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
and integrated economic strategy. As Brunner points out: "They do not stand alone, as their role in regional economic development can be comprehended only in terms of the network effects
In economics, a network effect (also called network externality or demand-side economies of scale) is the phenomenon by which the value or utility a user derives from a good or service depends on the number of users of compatible products. Netw ...
that they induce".
Economic development
A well-functioning industrial cluster will greatly stimulate economic development. As part of a comprehensive strategic development plan and integrated economic network, the economic corridor will integrate economic development in several regions
In geography, regions, otherwise referred to as zones, lands or territories, are areas that are broadly divided by physical characteristics (physical geography), human impact characteristics (human geography), and the interaction of humanity and t ...
, within a country
A country is a distinct part of the world, such as a state, nation, or other political entity. It may be a sovereign state or make up one part of a larger state. For example, the country of Japan is an independent, sovereign state, while the ...
, and between neighbouring countries. Due to the reduction of transportation
Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land (rail and road), water, cable, pipeline, ...
and communication
Communication (from la, communicare, meaning "to share" or "to be in relation with") is usually defined as the transmission of information. The term may also refer to the message communicated through such transmissions or the field of inquir ...
costs, smooth connection of various industrial chains, and the shortening of delivery time, many costs have been saved during economic production
Production is the process of combining various inputs, both material (such as metal, wood, glass, or plastics) and immaterial (such as plans, or knowledge) in order to create output. Ideally this output will be a good or service which has value an ...
. At the same time, the economic corridor can also promote the development of other local industries, such as tourism
Tourism is travel for pleasure or business; also the theory and practice of touring (disambiguation), touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tour (disambiguation), tours. Th ...
and hotels
A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a ref ...
.
Employment
As a development strategy
Strategy (from Greek στρατηγία ''stratēgia'', "art of troop leader; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the "art ...
and infrastructure
Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
construction, the economic corridor will drive the development of regional industries and create thousands of local jobs. Among them, the tourism industry
Tourism is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours. The World Tourism Organization defines tourism mo ...
, hotel industry
A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a ref ...
, catering industry
Catering is the business of providing food service at a remote site or a site such as a hotel, hospital, pub, aircraft, cruise ship, park, festival, filming location or film studio.
History of catering
The earliest account of major services be ...
and other service industries will gain huge development opportunities. In addition, the transnational economic corridor will also stimulate the development of foreign trade
International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (see: World economy)
In most countries, such trade represents a significant s ...
, and people in different countries can expand the scope of trade
Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.
An early form of trade, barter, saw the direct excha ...
by taking advantage of convenient transportation
Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land (rail and road), water, cable, pipeline, ...
conditions.
Living standards
The development of employment
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...
, commerce
Commerce is the large-scale organized system of activities, functions, procedures and institutions directly and indirectly related to the exchange (buying and selling) of goods and services among two or more parties within local, regional, nation ...
and trade will greatly increase the incomes
Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. For ...
of local people. In addition, some basic living facilities will also be developed, such as public transportation
Public transport (also known as public transportation, public transit, mass transit, or simply transit) is a system of transport for passengers by group travel systems available for use by the general public unlike private transport, typical ...
, banking
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Because ...
, medical facilities
A health facility is, in general, any location where healthcare is provided. Health facilities range from small clinics and doctor's offices to urgent care centers and large hospitals with elaborate emergency rooms and trauma centers. The nu ...
, education
Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty. Va ...
and so on. Especially in some remote areas, due to the development of transportation
Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land (rail and road), water, cable, pipeline, ...
, residents can receive education
Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty. Va ...
and medical services
Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health profess ...
nearby, and living conditions
Habitability refers to the adequacy of an environment for human living. Where housing is concerned, there are generally local ordinances which define habitability. If a residence complies with those laws it is said to be habitable. In extreme e ...
are greatly facilitated.
Critics
Crowding out effect
The construction of economic corridors requires huge capital investment
Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort.
In finance, the purpose of investing is ...
, and related risks such as white elephant investment or unfair public investment
Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual o ...
will sacrifice the interests of many small businesses
Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit."
Having a business name does not separat ...
and local residents and benefit a few large corporations
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...
. Some scholars pointed out that “Large investment in corridors risk crowding out other public investment in critical areas, such as education, water and sanitation, and health”.
Environmental externalities
The construction of some economic corridors have a negative impact on nature reserves
A nature reserve (also known as a wildlife refuge, wildlife sanctuary, biosphere reserve or bioreserve, natural or nature preserve, or nature conservation area) is a protected area of importance for flora, fauna, or features of geological or o ...
, forest parks and wildlife reserves
A nature reserve (also known as a wildlife refuge, wildlife sanctuary, biosphere reserve or bioreserve, natural or nature preserve, or nature conservation area) is a protected area of importance for flora, fauna, or features of geological or o ...
, etc., which will cause huge damage to the local environment and biodiversity
Biodiversity or biological diversity is the variety and variability of life on Earth. Biodiversity is a measure of variation at the genetic (''genetic variability''), species (''species diversity''), and ecosystem (''ecosystem diversity'') l ...
, especially some endangered species
An endangered species is a species that is very likely to become extinct in the near future, either worldwide or in a particular political jurisdiction. Endangered species may be at risk due to factors such as habitat loss, poaching and inv ...
. At the same time, air pollution
Air pollution is the contamination of air due to the presence of substances in the atmosphere that are harmful to the health of humans and other living beings, or cause damage to the climate or to materials. There are many different types ...
, water pollution
Water pollution (or aquatic pollution) is the contamination of water bodies, usually as a result of human activities, so that it negatively affects its uses. Water bodies include lakes, rivers, oceans, aquifers, reservoirs and groundwater. Water ...
and noise pollution
Noise pollution, also known as environmental noise or sound pollution, is the propagation of noise with ranging impacts on the activity of human or animal life, most of them are harmful to a degree. The source of outdoor noise worldwide is main ...
caused by industrial construction
Construction is a general term meaning the art and science to form objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Press 2009 and com ...
will also deteriorate the local fragile ecosystem
An ecosystem (or ecological system) consists of all the organisms and the physical environment with which they interact. These biotic and abiotic components are linked together through nutrient cycles and energy flows. Energy enters the syste ...
, and the lives of residents along the route will also be greatly disturbed. Some residents living on agriculture
Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to ...
will face problems such as soil erosion
Soil erosion is the denudation or wearing away of the upper layer of soil. It is a form of soil degradation. This natural process is caused by the dynamic activity of erosive agents, that is, water, ice (glaciers), snow, air (wind), plants, and ...
and water pollution
Water pollution (or aquatic pollution) is the contamination of water bodies, usually as a result of human activities, so that it negatively affects its uses. Water bodies include lakes, rivers, oceans, aquifers, reservoirs and groundwater. Water ...
.
Resettlement and migration
The construction of an economic corridor that crosses the residential area will force local residents to move to other areas or resettle, causing them to lose cultivated land
Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to ...
or commercial land, employment
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...
, interpersonal relationships. The cost of readjusting to a new life cannot be ignored.
Destruction of historical and cultural monuments
Industrial construction
Construction is a general term meaning the art and science to form objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Press 2009 and com ...
may cause damage to cultural monuments along the route. Such damage may be unintentional, but it is a huge loss of human civilization
A civilization (or civilisation) is any complex society characterized by the development of a state, social stratification, urbanization, and symbolic systems of communication beyond natural spoken language (namely, a writing system).
Civ ...
.
Other problems
The improvement of roads will increase the probability of traffic accidents and human trafficking
Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. This may encompass providing a spouse in the context of forced marriage, or the extrac ...
. At the same time, residents along the GMS Southern Economic Corridor worry that the construction of the economic corridor will promote the spread of AIDS
Human immunodeficiency virus infection and acquired immunodeficiency syndrome (HIV/AIDS) is a spectrum of conditions caused by infection with the human immunodeficiency virus (HIV), a retrovirus. Following initial infection an individual m ...
, because the development of living facilities in the surrounding areas, such as the development of the hotel industry
A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a ref ...
and brothel
A brothel, bordello, ranch, or whorehouse is a place where people engage in sexual activity with prostitutes. However, for legal or cultural reasons, establishments often describe themselves as massage parlors, bars, strip clubs, body rub par ...
s, will provide places for sexual services
Prostitution is the business or practice of engaging in sexual activity in exchange for payment. The definition of "sexual activity" varies, and is often defined as an activity requiring physical contact (e.g., sexual intercourse, non-penet ...
.
Examples
* China–Pakistan Economic Corridor
China–Pakistan Economic Corridor (CPEC) (; ur, چین پاکستان اقتصادی راہداری) is a collection of infrastructure projects that are under construction throughout Pakistan beginning in 2013. Originally valued at $47 billi ...
* Central Asia Regional Economic Cooperation Program
The Central Asia Regional Economic Cooperation (CAREC) Program is a program established in 1997 by the Asian Development Bank (ADB) to encourage economic cooperation among countries in Central Asia and nearby parts of Transcaucasia and South Asi ...
* China–Central Asia–West Asia Economic Corridor
* Khyber Pass Economic Corridor
Khyber Pass Economic Corridor (KPEC) ( ur, ; ps, د خيبر دره اقتصادي دهلیز) is an infrastructure project that aims to expand Pakistan's economic connectivity with Afghanistan, and by extension Central Asia, via the Khyber Pass ...
* Trans-Himalayan Multi-dimensional Connectivity Network
* Sarawak Corridor of Renewable Energy
The Sarawak Corridor of Renewable Energy ("SCORE") is an economic region and development corridor covering central Sarawak, a Malaysian State on the island of Borneo. SCORE was launched in 2008. It is one of the five regional development corridors ...
* Nanning–Singapore Economic Corridor
* East–West Economic Corridor
* Mumbai-Bangalore economic corridor
The Bengaluru–Mumbai Industrial Corridor (BMIC) is a proposed economic corridor in India between Mumbai and Bangalore. The corridor is spread across the states of Karnataka and Maharashtra and passes through major cities such as Davanagere, C ...
* Eastern Economic Corridor
The Eastern Economic Corridor (Abbreviation, Abrv: EEC; th, ระเบียงเศรษฐกิจภาคตะวันออก, Rabīang Sētthakit Phāk Tawan-ǭk, ) officially the Eastern Special Development Zone (ESDZ), is a specia ...
* Eastern Economic Corridor (India)
* Bangladesh–China–India–Myanmar Forum for Regional Cooperation
** East-West Industrial Corridor Highway, Arunachal Pradesh
East-West Industrial Corridor Highway of Arunachal Pradesh, a 2-lane and 966.78 km long including existing 274.20 km Pasighat-Manmao route, is a proposed highway across lower foothills of Arunachal Pradesh state in India from Bhairabkunda in Ass ...
See also
* Industrial corridor An industrial corridor is a package of infrastructure spending allocated to a specific geographical area, with the intent to stimulate industrial development.
An industrial corridor aims to create an area with a cluster of manufacturing or another ...
* Infrastructure Development Finance Company
Infrastructure Development Finance Company Limited, more commonly known as IDFC, is a finance company based in India under Department of Financial Services, Government of India. It provides finance and advisory services for infrastructure pro ...
* Environmental issues
Environmental issues are effects of human activity on the biophysical environment, most often of which are harmful effects that cause environmental degradation. Environmental protection is the practice of protecting the natural environment on t ...
References
Economic geography
Transport in Asia
Transport in Africa
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