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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 pri ...
within a geographical area designed to
stimulate Stimulation is the encouragement of development or the cause of activity in general. 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 economics, economic development (or 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 object ...
. They connect different
economic agents In economics, an agent is an actor (more specifically, a decision maker) in a model of some aspect of the economy. Typically, every agent makes decisions by solving a well- or ill-defined optimization or choice problem. For example, ''buyers'' ( ...
in a particular geographic area. Corridors may be developed within a country or between countries. They have been part of strategies for economic development in Asia, Africa, and other areas. Economic corridors often feature integrated infrastructure, such as
highway A highway is any public or private road or other public way on land. It includes not just major roads, but also other public roads and rights of way. In the United States, it is also used as an equivalent term to controlled-access highway, or ...
s,
railroad Rail transport (also known as train transport) is a means of transport using wheeled vehicles running in railway track, tracks, which usually consist of two parallel steel railway track, rails. Rail transport is one of the two primary means of ...
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 Hamburg, Manch ...
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, an economic corridor is often one part of a package of different measures including infrastructure development, visa and transport agreements, and
standardization Standardization (American English) or standardisation (British English) is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organiza ...
. Social needs, such as housing, are often considered in development plans.


Definition

The
Asian Development Bank The Asian Development Bank (ADB) is a regional development bank to promote social and economic development in Asia. The bank is headquartered in Metro Manila, Philippines and maintains 31 field offices around the world. The bank was establishe ...
coined the term economic corridor in 1998 to describe networks between different economic agents in a region. In practice, the term has most often been used to connote road highways such as the East-West Economic Corridor or the Southern Economic Corridor of the
Greater Mekong Subregion The Greater Mekong Subregion, (GMS) or just Greater Mekong, is a trans-national region of the Mekong River basin in Southeast Asia. The region is home to more than 300 million people. It came into being with the launch of a development program i ...
. Other corridors are anchored by other types of transportation, such as the China-Pakistan Economic Corridor, which has connectivity both by sea and land.


Benefits

Regional integration Economic corridors not only connect regions and countries through transportation but also strengthen infrastructure construction by establishing industrial clusters, thereby attracting investment and developing regional economy. As Hans-Peter 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". Recent work has emphasized the need for a clear link of linear infrastructure like roads to establish such integration of broader, spatial economic activities, as exemplified by the Almaty–Bishkek Economic Corridor (ABEC). 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 within a country and/or between neighboring countries. Corridors can reduce production costs due to lower transportation and communication expenses, smooth connections between industrial chains, and shortened delivery times. At the same time, they can promote the development of other local industries, such as
tourism Tourism is travel for pleasure, and the Commerce, commercial activity of providing and supporting such travel. World Tourism Organization, UN Tourism defines tourism more generally, in terms which go "beyond the common perception of tourism as ...
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 refr ...
. Employment As a development and infrastructure strategy, the economic corridor may drive the development of regional industries and create thousands of local jobs. Tourism, hotels,
catering Catering is the business of providing food services 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 service ...
, and other service industries may gain development opportunities. In addition, the transnational economic corridor can also stimulate the development of
foreign trade International trade is the exchange of Capital (economics), capital, goods, and Service (economics), services across international borders or territories because there is a need or want of goods or services. (See: World economy.) In most countr ...
by providing convenient transportation conditions. Living standards The development of employment, commerce, and trade can increase the incomes of local people and facilitate the development some basic living facilities. Especially in some remote areas, the construction of transportation infrastructure can give residents access to education and medical services nearby, improving living conditions.


Critiques

Crowding out effect The construction of economic corridors requires large public or capital investment, which comes with several attached risks. Critics may describe a white elephant investment, an unfair investment of public money and space that sacrifices small business and individual interests in favor of corporate ones. The large investment in a single area can risk reduced investment in other areas, such as health, water and education. Impacts of construction The construction of some economic corridors has a negative impact on the local environment, causing various forms of
pollution Pollution is the introduction of contaminants into the natural environment that cause harm. Pollution can take the form of any substance (solid, liquid, or gas) or energy (such as radioactivity, heat, sound, or light). Pollutants, the component ...
and sometimes damaging
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, funga, or features of geolog ...
, forest parks or wildlife reserves. Industrial construction may also damage cultural monuments along the route. If an economic corridor crosses a residential area, construction may force local residents to relocate and lose cultivated or commercial land, employment, and interpersonal relationships. Some residents living and working in agriculture may be impacted by
soil erosion Soil erosion is the denudation or wearing away of the Topsoil, 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, Atmosphere of Ea ...
and
water pollution Water pollution (or aquatic pollution) is the contamination of Body of water, water bodies, with a negative impact on their uses. It is usually a result of human activities. Water bodies include lakes, rivers, oceans, aquifers, reservoirs and ...
.


Examples

*
Bangladesh–China–India–Myanmar Forum for Regional Cooperation The Bangladesh, China, India and Myanmar Economic Corridor (BCIM) was a proposed road, rail, water and air link connecting India and China through Myanmar and Bangladesh as a corridor. In 2015, China proposed including the corridor as part ...
**
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 the lower foothills of Arunachal Pradesh state in India, from Bhairabkunda ...
*
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 Asia. ...
*
China–Central Asia–West Asia Economic Corridor The China–Central Asia–West Asia Economic Corridor (abbreviated as CCAWEC) is an economic and transportation corridor of the Belt and Road Initiative, a global economic connectivity program led by China. The corridor was one of the 6 land corri ...
*
China–Pakistan Economic Corridor China–Pakistan Economic Corridor (CPEC; zh, c=中巴经济走廊, p=Zhōng bā jīngjì zǒuláng; ) is a 3,000 km Chinese infrastructure network project currently under construction in Pakistan. This sea-and-land-based corridor aims to ...
*
East–West Economic Corridor The East–West Economic corridor is an economic development program initiated in order to promote development and integration of 5 Southeast Asian countries, namely: Myanmar, Thailand, Laos, Cambodia and Vietnam. The concept was agreed upon in 199 ...
*
Eastern Economic Corridor The Eastern Economic Corridor ( Abrv: EEC; , , ) officially the Eastern Special Development Zone (ESDZ), is a special economic zone of three provinces in eastern Thailand. Collectively, these provinces occupy an area of , and in 2016 had an estima ...
* Eastern Economic Corridor (India) * India-Middle East-Europe Economic Corridor *
Khyber Pass Economic Corridor Khyber Pass Economic Corridor (KPEC) (; ) is an infrastructure project that aims to expand Pakistan's economic connectivity with Afghanistan, and by extension Central Asia, via the Khyber Pass. The project was approved for construction in December ...
* Mumbai-Bangalore economic corridor * Nanning–Singapore Economic Corridor *
Sarawak Corridor of Renewable Energy The Sarawak Corridor of Renewable Energy (SCORE; Malay language, Malay: ) is an economic region and Economic corridor, development corridor covering central Sarawak, a Malaysian State on the island of Borneo. SCORE was launched in 2008. It is one ...
* Trans-Himalayan Multi-dimensional Connectivity Network


See also

* Industrial corridor * Infrastructure Development Finance Company *
Environmental issues Environmental issues are disruptions in the usual function of ecosystems. Further, these issues can be caused by humans (human impact on the environment) or they can be natural. These issues are considered serious when the ecosystem cannot recov ...


References

Economic geography Transport in Asia Transport in Africa {{economy-stub