Abstract:
Impact of economic or trade agreements effect the economy of any developing
country in a significant way. Many researchers have done their research on
different economic corridors to calculate their impact on the economies of
developing countries but there is little, or no research done on China Pakistan
Economic Corridor specifically targeting the impact of this economic corridor
on the SMEs of Pakistan. The aim of the study was to calculate, analyze and
understand the impact of China Pakistan Economic Corridor on the SMEs of
Pakistan. Data was collected from the SMEs of Rawalpindi and Islamabad. To
conduct this study SME growth was taken as dependent variable while
Reduction of Tariffs and Non-Tariff Barriers, Demand of Skilled Labor and
New Market Opportunities were taken as independent variables. Data was
collected by distributing questionnaires in SMEs of Rawalpindi and Islamabad
and statistical analysis was carried out by using SPSS. Findings reveal that
SMEs owners believe that China Pakistan Economic Corridor will help their
businesses to grow and will increase their profitability. Business community
also believes that reduction of tariff and non-tariff barriers will further
strengthen their business. Study also briefs us that new market opportunities
will be created due to China Pakistan Economic Corridor. Findings also
enlightens us that Pakistani businessman believes that demand of skilled labor
decreases when SMEs grow.
