Title: Logistic infrastructure, tax revenue and economic activities: how to finance economic corridors

Authors: Muhammad Ayub Mehar

Addresses: Department of Business Administration, Iqra University Karachi, Karachi, 75790, Pakistan

Abstract: This study provides a strong justification in favour of economic corridors in CAREC and ECO member countries. A strong and large network of economic corridors is required not only for connectivity but also for improvement in logistic performance. Based on empirical pieces of evidence, it has been noted that growth in tax revenues, enhancement in merchandising trade, and improvement in labor participation rate are the direct effects of improvement in logistic infrastructure. The external debt for the public sector has been classified as a 'Bad mode of financing' in this study because of its negative impact on corporate wealth. It suggests that international infrastructure development companies should provide bridge financing for investment in economic corridors and infrastructure development. These companies can play an intermediatory role in financing long-term macrofinancing projects. The empirical analysis is based on five years of data from 158 countries.

Keywords: CAREC; Central Asia Regional Economic Cooperation; domestic credit; fixed effect model; logistic infrastructure; logistic performance; market capitalisation; political stability.

DOI: 10.1504/IJLEG.2024.142078

International Journal of Logistics Economics and Globalisation, 2024 Vol.11 No.1, pp.21 - 48

Received: 07 Dec 2023
Accepted: 13 Mar 2024
Published online: 07 Oct 2024 *

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