FDI And Regional Economic Dеvеlоpmеnt In China-Central Asia-West Asia Economic Corridor

The study attempts to conduct the first complete panel investigation in the China-Central Asia-West Asia economic corridor,as a part of the Belt and Road Initiative,of the effect of FDI flows on infrastructure and regional development in the region of interest.Furthermore,the study presents an analytical research of the present and future economic prospects of the CCAWA corridor.The CCAWA corridor was selected as a research topic for the following reasons: The first reason is the geographical location of the corridor.The CCAWA economic corridor is a cruicial component of the Silk Road Economic Belt.It crosses five Central Asian Countries(Kyrgyzstan,Kazakhstan,Tajikistan,Turkmenistan,and Uzbekistan)and 17 countries in West Asia(including Iraq,Jordan,Iran,Turkey,Saudi Arabia,and Afghanistan).All corridor countries locate on land,which complicates the integration process and increases the importance of infrastructure development in the region.The second reason,is that the CCAWA economic corridor is the most sophisticated study object with the numerous countries and the supreme geopolitical complexity among the six economic corridors under the BRI implementation.Due to the geopolitical situation and economic differences,this corridor is of high scientific interest for research.It ties Central Asian countries and West Asian nations rich in oil and various mineral resources.West and Central Asia have great potential for economic development and cooperation within BRI.In general,the corridor connects 23 countries in various economic spheres.Based on the theory that the economic corridor is an instrument of economic development,the purpose of the current study is to present the answers on the following questions CCAWAEC.For the research question the China-Central Asia-West Asia Economic Corridor is examined: May the increase of FDI flows positively affect Economic Regional Development in China-Middle Asia-West Asia Economic Corridor? What relations between Economic Regional Development in CCAWAEC and infrastructure construction?What is the role of foreign investment plays in the process of affecting economic development in CCAWAEC?.According to literature and theory,foreign direct investment(FDI)is an integral part of an open and efficient international economic system and a catalyst for development.According to hypothesis,FDI has a positive impact on the economic development of the China-Central Asia-West Asia Economic Corridor.Combining qualitative and quantitative analysis,including breadth of economic development(GDP),depth of economic development(GDP per capita),foreign direct investment,infrastructure construction,population size,agricultural development,industrial development,tourism development,labor force,and homeland security data Interpret quantitative results.The study hypothesizes and provides evidence that there is a positive relationship between FDI and the economic development of the China-Central Asia-West Asia Economic Corridor.Data is analysed using the Mediation model,which focuses on the estimation of the indirect effect of X(FDI)on Y(economic development)through an mediating mediator variable M(Infrastructure)causally located between X and Y(i.e.,a model of form X → M → Y),where X is the input variable,Y is output and M is the Mediating Variable.The study provides evidence that FDI promotes infrastructure development in the China-Central Asia-West Asia Economic Corridor,as well as economic development.Infrastructure plays a mediating role between FDI and economic development.This paper,along with a quantitative forecast approach,provides evidence of economic development of the CCAWA Economic Corridor to 2032..An autoregressive integrated moving average,or ARIMA,is used to forecast future prospects and development trends in CCAWAEC.According to the results of this study,the construction of the China-Central Asia-West Asia Economic Corridor is one of the main drivers of economic development in the region.This study provides a basis for a deeper study of the intermediate results of the BRI program implementation.The construction of this corridor is a long and multifaceted process and this study is the first systematic study on this issue.Finally,based on the above research,the main conclusions of this thesis are drawn,and the countermeasures and suggestions for promoting the construction of the economic corridor are put forward.A special role in the construction of the corridor is played by international relations between the participating countries,as well as already launched and implemented projects.