Digitalization and Poverty Reduction in the Era of Regional Integration: A Review of the China Pakistan Economic Corridor (CPEC)

Abstract

In the era of digital transformation and deepening global interconnectivity, the nexus between digital governance, regional infrastructural integration, and poverty reduction presents growing policy relevance. This review synthesizes theoretical and empirical literatures around digitalization, poverty alleviation, and the CPEC initiatives linking China and Pakistan. It argues that CPEC’s infrastructural and governance investments provide an illustrative case of “regionalization where corridor driven infrastructure, institutional reform, and digital platforms converge to reshape developmental trajectories. The review identifies three key literatures: (i) digitalization and inclusive development (ii) regional corridor and value-chain integration, and (iii) poverty reduction mechanisms in developing contexts. Through a thematic analysis, the paper highlights how digitalization operates as a multiplier of infrastructural investments and governance reform in the CPEC context, yet also reveals enduring governance, geography and equity related bottlenecks. It concludes by offering a research agenda for future inquiry and policy implications for governments engaged in digital infrastructure led regional integration.