I. Nudging SMEs in Pakistan to invest in renewable energy: the role of information provision (2023 – Ongoing)

Abstract

In this exploratory study, we intend to design and administer a survey across a sample of small-medium manufacturing enterprises in central Punjab to better understand the main structural, informational and behavioral barriers that prevent business owners from switching to greener energy sources. In particular, we will elicit respondents’ personal preferences, beliefs and attitudes around greener energy sources, as well as their intended behavior or expected likelihood of adopting greener energy.

Researchers: Theresa Chaudhry, Azam Chaudhry, Phillip Garner, Nikita Grabher-Meyer and Nida Jamil

II. Can Foreign Aid Trigger Unofficial Capital Outflows? Panel Data Analysis (2023)

Abstract

Developing countries, characterized by underinvestment and lack of consistent economic growth over time, are the main recipients of development assistance from various countries and institutions. A recurring question in the literature has been whether such foreign aid leads to a better economic environment or just contributes towards undocumented capital flight. The latter case has the potential to further deteriorate economic growth. In this paper, our ITC team will estimate the impact of foreign aid on undocumented capital outflows using the standard methodology of Trade Misinvoicing (TMI). They will take into account a panel data with 114 countries receiving official development assistance over a period 23 years from 1999 to 2021

Researchers: Azam Chaudhry (Lahore School of Economics), Gul Anadaman (Lahore School of Economics) and Aymen Junaid (Lahore School of Economics)

III.  Fixed costs of innovation as barriers to upgrading in the surgical-goods sector in Sialkot (2018 – Ongoing)

Abstract

We propose to offer grants for innovations that increase exports and for innovations to produce new products (i.e. that have not previously been produced in Sialkot). The main goal is to evaluate the effectiveness of the grant program in promoting innovation among treated firms. We will also look for spillovers of innovations to other (untreated) firms through network links.

Researchers: Azam Chaudhry, Shamyla Chaudry, Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)

IV.  Barriers to Upgrading in the Sialkot Football Sector (2018 - Ongoing)

Abstract

The project has been developed under the International Growth Centre (IGC) and the Private Enterprise in Developing Countries (PEDL) initiative. In this project, the researchers investigate the extent to which high costs of high-quality inputs are a barrier to upgrading in the football sector. One of the primary inputs into football production is an artificial leather called rexine. They propose an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. They will look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higher-quality balls leads firms to transact with more knowledgeable buyers.

Researchers: Azam Chaudhry (Lahore School of Economics), Shamyla Chaudry (Lahore School of Economics), David Atkin (MIT), Amit Khandelwal (Columbia University) and Eric Verhoogen (Columbia University)

V.  High costs of high-quality inputs as a barrier to upgrading in the football sector in Sialkot  (2018 - Ongoing)

Abstract

We develop an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. We look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higherquality balls leads firms to transact with more knowledgeable buyers. Accordingly, we intend to track complementary changes in other inputs, shifts in the composition of output toward higher-quality footballs, and other process innovations.

Researchers: Azam Chaudhry (Lahore School), Shamyla Chaudry (Lahore School), Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)

I. Measuring Actual TFP Growth: Stripping away Omitted Price Bias and Demand Shocks  (2022)

Abstract

We address two important sources of bias that remain unaccounted for in most analyses of firm-level productivity and trade policy, i.e., omitted output price bias and demand shocks.  Using firm-level data containing product-level price and physical output measures, we avoid the omitted output price bias typically encountered when using sectoral deflators. Besides being a primary determinant of firm survival, our precise controls for demand shocks also help account for quality differences between firms. We then test the methodology developed by De Loecker (2011) for use on firm revenue data and find that its accuracy is dependent on the precision of the price deflator. Results from Pakistan suggest that the impact of a 10% reduction in tariffs on firm-level productivity falls from 0.81% to 0.23%. The net impact of trade liberalization has been a mere 2.2%, with the biggest gains in the least protected segments.

Keywords: Trade, Productivity, Firms, Demand Shocks.

Researchers: Nida Jamil (Early Career Researcher, School of Economics, University of Edinburgh), Theresa Chaudhry (Lahore School of Economics) and Azam Chaudhry (Lahore School of Economics)

II.  Fixed costs of innovation as barriers to upgrading in the surgical-goods sector in Sialkot (2018 – Ongoing)

Abstract

We propose to offer grants for innovations that increase exports and for innovations to produce new products (i.e. that have not previously been produced in Sialkot). The main goal is to evaluate the effectiveness of the grant program in promoting innovation among treated firms. We will also look for spillovers of innovations to other (untreated) firms through network links.

Researchers: Azam Chaudhry, Shamyla Chaudry, Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)

III.  Barriers to Upgrading in the Sialkot Football Sector (2018 - Ongoing)

Abstract

The project has been developed under the International Growth Centre (IGC) and the Private Enterprise in Developing Countries (PEDL) initiative. In this project, the researchers investigate the extent to which high costs of high-quality inputs are a barrier to upgrading in the football sector. One of the primary inputs into football production is an artificial leather called rexine. They propose an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. They will look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higher-quality balls leads firms to transact with more knowledgeable buyers.

Researchers: Azam Chaudhry (Lahore School of Economics), Shamyla Chaudry (Lahore School of Economics), David Atkin (MIT), Amit Khandelwal (Columbia University) and Eric Verhoogen (Columbia University)

IV.  High costs of high-quality inputs as a barrier to upgrading in the football sector in Sialkot  (2018 - Ongoing)

Abstract

We develop an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. We look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higherquality balls leads firms to transact with more knowledgeable buyers. Accordingly, we intend to track complementary changes in other inputs, shifts in the composition of output toward higher-quality footballs, and other process innovations.

Researchers: Azam Chaudhry (Lahore School), Shamyla Chaudry (Lahore School), Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)

I. ITC, Lahore School of Economics in WTO Chairs Programme (2021)

Abstract

ITC, Lahore School of Economics was the only institution from Pakistan, among seventeen other universities from least-developed and developing country members, selected as a member of the prestigious WTO’s Chairs Programme. The role of the centre, being part of the WTO Chair Programme, would be to enhance knowledge and understanding of the international trading system among academics and policy makers in the country.

The objectives of the WTO Chair at the Lahore School of the Economics are threefold: First, to further the understanding of trade related issues (including trade theory, implications of restrictions on trade, the role of international bodies like the WTO, etc.) amongst students, the business community, policy makers and other stakeholders. Second, to conduct timely, relevant, and broadly inclusive research on trade related issues which is not only of the highest academic quality but is also relevant to stakeholders. Third, to disseminate the findings of its activities (both research and stakeholder consultations) to a broader audience through an effective dissemination campaign.

II.  Fixed costs of innovation as barriers to upgrading in the surgical-goods sector in Sialkot (2018 – Ongoing)

Abstract

We propose to offer grants for innovations that increase exports and for innovations to produce new products (i.e. that have not previously been produced in Sialkot). The main goal is to evaluate the effectiveness of the grant program in promoting innovation among treated firms. We will also look for spillovers of innovations to other (untreated) firms through network links.

Researchers: Azam Chaudhry, Shamyla Chaudry, Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)

III.  Barriers to Upgrading in the Sialkot Football Sector (2018 - Ongoing)

Abstract

The project has been developed under the International Growth Centre (IGC) and the Private Enterprise in Developing Countries (PEDL) initiative. In this project, the researchers investigate the extent to which high costs of high-quality inputs are a barrier to upgrading in the football sector. One of the primary inputs into football production is an artificial leather called rexine. They propose an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. They will look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higher-quality balls leads firms to transact with more knowledgeable buyers.

Researchers: Azam Chaudhry (Lahore School of Economics), Shamyla Chaudry (Lahore School of Economics), David Atkin (MIT), Amit Khandelwal (Columbia University) and Eric Verhoogen (Columbia University)

IV.  High costs of high-quality inputs as a barrier to upgrading in the football sector in Sialkot  (2018 - Ongoing)

Abstract

We develop an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. We look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higherquality balls leads firms to transact with more knowledgeable buyers. Accordingly, we intend to track complementary changes in other inputs, shifts in the composition of output toward higher-quality footballs, and other process innovations.

Researchers: Azam Chaudhry (Lahore School), Shamyla Chaudry (Lahore School), Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)

I.  A  Roadmap to Diversifying Pakistan’s Exports: Operationalizing the Product Space (2019)

Abstract

The lack of export diversification and expansion in Pakistan has remained a critical impediment to growth. To address this, it is crucial to identify potential new exports that are not only relatively closer to the current export basket but also those products that have the potential to lead to higher value-added exports. This paper explores new categories of merchandise exports by incorporating the methodology developed by Hausmann and Klinger (2007), Hausmann et al. (2007), and Hidalgo et al. (2007). It operationalizes the concept of product space and identifies new products for Pakistan which are closer to prevailing production capabilities as well as new products that are of higher sophistication. Using the same methodology, this paper will also analyzes the change in export basket of Pakistan from 2017 to 2021 and evaluates whether and to what extent the new categories recommended in 2017 could become part of 2021 export basket.

Researchers:  Azam Chaudhry (Lahore School of Economics), Gul Anadaman (Lahore School of Economics) and Aymen Junaid (Lahore School of Economics)

II.  Fixed costs of innovation as barriers to upgrading in the surgical-goods sector in Sialkot (2018 – Ongoing)

Abstract

We propose to offer grants for innovations that increase exports and for innovations to produce new products (i.e. that have not previously been produced in Sialkot). The main goal is to evaluate the effectiveness of the grant program in promoting innovation among treated firms. We will also look for spillovers of innovations to other (untreated) firms through network links.

Researchers: Azam Chaudhry, Shamyla Chaudry, Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)

III.  Barriers to Upgrading in the Sialkot Football Sector (2018 - Ongoing)

Abstract

The project has been developed under the International Growth Centre (IGC) and the Private Enterprise in Developing Countries (PEDL) initiative. In this project, the researchers investigate the extent to which high costs of high-quality inputs are a barrier to upgrading in the football sector. One of the primary inputs into football production is an artificial leather called rexine. They propose an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. They will look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higher-quality balls leads firms to transact with more knowledgeable buyers.

Researchers: Azam Chaudhry (Lahore School of Economics), Shamyla Chaudry (Lahore School of Economics), David Atkin (MIT), Amit Khandelwal (Columbia University) and Eric Verhoogen (Columbia University)

IV.  High costs of high-quality inputs as a barrier to upgrading in the football sector in Sialkot  (2018 - Ongoing)

Abstract

We develop an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. We look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higherquality balls leads firms to transact with more knowledgeable buyers. Accordingly, we intend to track complementary changes in other inputs, shifts in the composition of output toward higher-quality footballs, and other process innovations.

Researchers: Azam Chaudhry (Lahore School), Shamyla Chaudry (Lahore School), Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)

I. Innovation and Firm Performance in Developing Countries: The Case of Pakistani Textile and Apparel Manufacturers  (2018)

Abstract

The researchers are conducting a firm-level survey of Pakistani textile manufacturers that builds on a similar survey that the researchers conducted in 2015 to construct a unique panel dataset to test the hypothesis that innovation is conducive to employment generation and sales growth, and that this is especially the case for smaller and younger companies. The firm level innovation study involves gathering primary data from 377 textiles manufacturers located in 12 different districts of the Punjab and Sindh provinces through an in-person survey-based questionnaire. The respondents of the survey will be the top managers of firms. This data then will be combined with the earlier survey in 2015 to generate a panel of 6 years and 377 manufacturers. The institutional level development strategy will focus on engaging with the Punjab and Sindh bureaus of statistics to collect data and conduct training with their staff on survey design and implementation as well as providing them with a multidimensional view of innovation and development. We also plan to develop the capacity of the Lahore School’s Innovation and Technology Centre by training a core group of junior researchers (with a focus on female researchers) with a focus on survey instrument, questionnaire design, data collection and on data reporting. The research team also plans to organize seminars in Pakistan and Oxford to disseminate and discuss the findings with various stakeholders including manufacturers and their associations/chambers, bureaus of statistics, policy makers and academics

Researchers: Waqar Wadho (Lahore School of Economics), Azam Chaudhry (Lahore School of Economics) and Matthew McCartney (University of Oxford)

II.  The Impact of Prenatal Exposure to Fasting on Child Health Outcomes (2018)

Abstract

The study’s results indicate that prenatal exposure to fasting during the first two trimesters has negative implications for children’s height-forage. In addition, children who were prenatally exposed to fasting in the second and third trimesters were, on average, thinner than nonexposed children. We find no evidence of selection bias arising from the decision to selectively time a pregnancy to avoid Ramadan – a major concern of our study.

Researchers: Theresa Thompson Chaudhry (Lahore School of Economics) and Azka Sarosh Mir (Lahore School of Economics)

III.  Fixed costs of innovation as barriers to upgrading in the surgical-goods sector in Sialkot (2018 – Ongoing)

Abstract

We propose to offer grants for innovations that increase exports and for innovations to produce new products (i.e. that have not previously been produced in Sialkot). The main goal is to evaluate the effectiveness of the grant program in promoting innovation among treated firms. We will also look for spillovers of innovations to other (untreated) firms through network links.

Researchers: Azam Chaudhry, Shamyla Chaudry, Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)

IV.  Barriers to Upgrading in the Sialkot Football Sector (2018 - Ongoing)

Abstract

The project has been developed under the International Growth Centre (IGC) and the Private Enterprise in Developing Countries (PEDL) initiative. In this project, the researchers investigate the extent to which high costs of high-quality inputs are a barrier to upgrading in the football sector. One of the primary inputs into football production is an artificial leather called rexine. They propose an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. They will look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higher-quality balls leads firms to transact with more knowledgeable buyers.

Researchers: Azam Chaudhry (Lahore School of Economics), Shamyla Chaudry (Lahore School of Economics), David Atkin (MIT), Amit Khandelwal (Columbia University) and Eric Verhoogen (Columbia University)

V.  High costs of high-quality inputs as a barrier to upgrading in the football sector in Sialkot  (2018 - Ongoing)

Abstract

We develop an experiment to offer subsidies for high-quality rexine to a random subset of firms and examine if this subsidy spurs upgrading. We look at two related but distinct dimensions of behavioural responses by firms. First, since high-quality inputs are likely to be complements in production, the subsidy may induce firms to purchase complementary high-quality inputs and produce higher-quality footballs, using their existing technologies and production processes. Second, the subsidy may potentially stimulate learning and spur technological improvements in the production process, if for instance innovation has a higher return in high-quality segments of the industry or if producing higherquality balls leads firms to transact with more knowledgeable buyers. Accordingly, we intend to track complementary changes in other inputs, shifts in the composition of output toward higher-quality footballs, and other process innovations.

Researchers: Azam Chaudhry (Lahore School), Shamyla Chaudry (Lahore School), Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT)