Based on the arguments for and against the construction of economic corridors in the economic literature, their usefulness was elaborated in this review. According to the economic literature, regional connectivity and economic corridors are important for reducing regional disparities, enhancing human welfare, creating employment opportunities, and promoting merchandise trade and foreign direct investment. The role of economic corridors as substitutes in the event of an unexpected interruption to the global supply chain is another dimension of their importance in the geopolitical economy. The study suggests that the decision to finance the construction cost of the corridors can be based on the additional earnings to the participating economies. The additional tax revenue can be used for the reimbursement of funds invested in these projects. Based on the mathematical reasoning and empirical pieces of evidence in the literature, it was realized that external debt or foreign funding will remain a workable choice for developing economies to expand and improve their infrastructure if the cost of capital is less than the added GDP growth. However, geopolitical and social aspects of the corridors and connectivity are prerequisites for economic and financial viability.
- Open Access
- Review
Financing the Economic Corridors: Connectivity of Central Asia, the Middle East, and South Asia
Author Information
Received: 03 Apr 2026 | Revised: 26 May 2026 | Accepted: 08 Jun 2026 | Published: 24 Jun 2026
Abstract
Keywords
BRI | CPEC | public private partnership | debt financing | infrastructure development | regional connectivity
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