The following are some of the projects that are currently ongoing as of the July 2022- August 2023 academic year onwards:
I. Nudging Firms in Pakistan to Invest in Renewable Energy: The Role of Information Provision (2024 - Ongoing)
Abstract
In this exploratory study, we will design and administer a survey across a sample of 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. In addition, we will conduct a randomized information experiment, embedded within the same survey, to test whether information provision targeted at changing specific respondents’ beliefs is effective at increasing their intention of purchasing solar energy.
Researcher: Theresa Chaudhry (Lahore School of Economics), Azam Chaudhry (Lahore School of Economics), Phillip Garner (Utah Tech), and Nikita Grabher-Meyer (University of East Anglia)
II. Estimating the Impact of Foreign Demand Shocks on Firm-Level Emissions in Pakistan. (2024 - Ongoing)
Abstract
Pakistan has experienced limited export growth and, at the same time, has been negatively affected by higher pollution and climate change-related shocks. This implies that controlling emissions is an important issue for policymakers and other stakeholders. This research will look at the link between foreign demand shocks that occurred as a result of trade agreements signed by Pakistan and firm-level emissions. We will use the changes in product-level tariffs due to Pakistan’s trade agreements to analyze how foreign demand shocks impact the level of energy usage and emissions by Pakistani manufacturers. We will also test to see if the destination of exports differentiates the size of these effects and if these differences can also be attributed to decisions made by firms, such as the use of new technology or changes in their product mix. These results will be critical for policymakers and stakeholders as they consider trade agreements and policies for industrial growth and lower emissions.
Researchers: Theresa Chaudhry (Lahore School of Economics), Azam Chaudhry (Lahore School of Economics), and Nida Jamil (Early Career Researcher, School of Economics, University of Edinburgh)
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 (Lahore School of Economics), Shamyla Chaudry (Lahore School of Economics), Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT).
IV. Understanding the Nature of Pakistan’s trade policies over the last decade and testing their impacts on Pakistan’s trade performance. (2024 - Ongoing)
Abstract
In recent years, the debate surrounding free trade versus protectionism has intensified, particularly as industrialized countries refocus on industrial policy. This argument is of particular importance to Pakistan which faces slowly growing exports but a high level of imports, which in turn has resulted in multiple balance of payments crises. This study will quantify the types of trade-restricting and trade-promoting policies and quantify the depth of these policies. This study will analyze the impact of trade policies on Pakistan’s trade performance over the last decade. We will use the Global Trade Alert (GTA) database, which contains comprehensive data on cross-country trade policies, and evaluate the nature and extent of trade-enhancing and trade-restricting policies in Pakistan over the last decade. We will then empirically test the impact of these policies on Pakistan’s export performance over this time. Both the methodology and the results will be shared with policymakers and other stakeholders to contribute to the debate on the success or failure of policies aimed at improving Pakistan’s trade performance.
Researchers: Azam Chaudhry (Lahore School of Economics), Gul Andaman (Lahore School of Economics)
V. Using Pakistan’s Product Space to Promote Higher Exports. (2024 - Ongoing)
Abstract
A persistent problem faced by Pakistan has been the balance of payments deficit. This is because Pakistan’s exports have been considerably lower than its merchandise imports and also reflects that Pakistan’s exports are mostly lower value-added products. This study will explore potential high value-added products that can become part of the export basket of Pakistan based on Pakistan’s cumulative knowledge and capabilities. We will use Hausman’s product space mapping, available in the Atlas of Economic Complexity, to explore which potential high-value-added products can be added to Pakistan’s export basket. This framework identifies the products and sectors that the country can focus on based on its cumulative knowledge and capabilities and has special relevance to Pakistan because of its narrow manufacturing and export base and the persistent balance of payments crises that the country experiences. This can be used to identify important areas of industrial and export growth and can be shared with relevant policy makers and stakeholders.
Researchers: Azam Chaudhry (Lahore School of Economics), Gul Andaman (Lahore School of Economics)
VI. 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 behavioral 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. 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 of Economics), Shamyla Chaudry (Lahore School of Economics), Amit Khandelwal (Yale University), Eric Verhoogen (Columbia University) and David Atkin (MIT).
VII. Heterogeneous Adoption of Knowledge Capital and its Impact on Firm Performance (2024 - Ongoing)
Abstract
We will use detailed primary data already collected by the Lahore School from firms in the textile, light engineering and automotive sectors to explore two important aspects of innovation:
First, we explore the heterogeneity in the adoption of ‘knowledge capital’ (defined as the new set of knowledge acquired, produced and used in the value creation process) at firm level in textile, light engineering and automotive sectors in Punjab to estimate its impact on the firm level outcomes such as revenue, cost of production, quality of the final product and market price of the final product.
Next, we argue that organizational and market rigidities may play an important role to motivate (deter) the firm to innovate (or not to innovate). We determine the probability of the firms to engage in innovation (product, process, marketing and business) based upon these factors as well as explore whether different sources for funding the innovation at firm level may play a trivial role in the firm’s probability to innovate across different sectors.
Last, we explore if any of these factors affect the firm level outcomes and the probability of innovation for the exporting and non-exporting firms any differently.
In addition to the analysis above, we explore one more important aspect of exporting firms in global market. We argue that global competition that the local exporting firms face, may affect their tendency to innovate in terms of its both intensity and direction.
Researchers: Rabia Arif (Lahore School of Economics) and Azam Chaudhry (Lahore School of Economics)
VIII. The Global Gig Economy: Pakistan’s Opportunity to Become a Leader in Service Exports? (2024 - Ongoing)
Abstract
Sustainable growth and balance of payments stabilization requires targeted policies to improve Pakistan’s export performance. Decade after decade Pakistan has continued to have a narrow base of low value-added exports. Freelance employment can be a promising solution to low export revenue. In FY 2022, a total of 2.6 billion dollars’ worth of IT exports were recorded of which freelancing export remittances accounted for 4 million dollars (The Express Tribune, 2022). Recently the prime minister has called for increasing IT exports to 15 billion dollars by 2026 (Radio Pakistan, 2023). Despite its huge potential, there is little research on growth of the gig economy for independent freelance workers in developing countries including Pakistan. Through this project, we hope to bridge this gap in the literature. We scrape data on Pakistan-based freelancers from the sites Guru.com and Freelancer.com to learn more about the landscape of freelancing in Pakistan.
Researchers: Theresa Chaudhry (Lahore School of Economics) and Hamna Ahmed (Lahore School of Economics)
IX. Why are Cousin Marriages so common in Pakistan? Examining the Effects of Cultural Norms, Dowry, and Economic Development as Potential Drivers (2024 - Ongoing)
Abstract
We use the framework of intensive vs. extensive kinship patterns to study consanguineous marriage patterns in Pakistan, which has the highest rate of cousin marriage in the world. Our theoretical framework contrasts motivations to move from a strategy of solidifying/reinforcing kin networks (intensive kinship) vs. expanding existing kin networks (extensive kinship) in response to economic development. We predict that factors related to traditional, intensive kinship systems will increase the likelihood of cousin marriage, whereas higher market engagement and aspects of family, kinship, and marriage systems associated with extensive kinship systems, will decrease the likelihood of cousin marriage. We also discuss why cousin marriage rates in Pakistan are so high compared to other parts of the world.
Researchers: Mary Shenk (Penn State University), Saman Naz (East Tennessee State University), and Theresa Chaudhry (Lahore School of Economics)
X. Fertility and the Female Decision to be Self-Employed – Testing for Bidirectional Causation in Punjab, Pakistan (2024 - Ongoing)
Abstract
Numerous studies, mostly from the developed countries, report a positive correlation between the number of children or fertility decisions and the choice of becoming self-employed amongst women. However, the direction of this relationship has remained ambiguous. Contingent upon the direction of causation between children and women self-employment, policies directed towards achieving a certain goal, such as facilitating women in maintaining an appropriate balance between family and work, may have varying ramifications on female self-employment. Using cross-pooled MICS data for the years; 2011 and 2014, this study aims at testing two competing hypotheses; first whether having more children influence women to prefer self-employment? Second, is it employment-specific attributes associated with self-employed females that impact their decision to reproduce? The paper contributes to the literature by testing for bidirectional causation between female self-employment and children using an instrumental variable approach for bringing exogenous variation in fertility and female self-employment decisions, respectively. Using this approach and controlling for various individual, household, and regional characteristics, the findings of this study reveal that the direction of causality runs from being self-employed to giving birth to children (fertility) in a positive manner, mostly driven by educated, middle-aged women dwelling in urban areas. There is no significant impact found of fertility on female self-employment decisions. Being self-employed is likely to lower the opportunity costs of raising (more) children, that is, forgone income and depreciation of skills, would be more prominent in dependent employment. This supports the argument that occupation specific characteristics, such as self-employment being self-run, flexible in terms of scheduling working hours and leisure time in between, routine-friendly, and exhibitive of lower incompatibility between mother and worker roles, bring a considerable degree of ease for women in raising more children. Thus, considering there is a higher degree of compatibility attached to self-employment as well as in expectations of raising a suitable heir of their family business, self-employed women in Pakistan may prefer having an additional child – a finding that has a tad bit of empirical evidence in the past literature.
Researchers: Rabia Arif (Lahore School of Economics) and Ayesha Mir
XI. Determining the Extent of Gender Discrimination in Education Sector: A case of Pakistan (2024 - Ongoing)
Abstract
Gender bias in developing countries may restrict educational opportunities for girls in comparison to boys. This paper attempts to measure the gender disparity in education amongst children from 5 years to 18 years of age across Pakistan. Using the data from PSLM 2010-2011 and applying Oaxaca decomposition with probit estimation we measure the gender gap. The results interestingly show that although a strong bias exists against females in overall enrollment rates, but as we explore further, we see that males drop out of private schools more as compared to females and the accumulated level of schooling of the male adults is also lower than that of females. We find that much of these differences are not due to the endowment effects. Large negative deviation for males may be attributed to the unobservable pressure and society’s norms regarding the role of males that affect them in an adverse manner.
Researchers: Rabia Arif (Lahore School of Economics) and Maham Khalid
XII. Impact of Temporary External Migration & Remittances on Child Health Outcomes in Punjab, Pakistan (2024 - Ongoing)
Abstract
Primary motive of temporary migration in developing countries like Pakistan is generally in response to the income constraint faced by the households. Therefore, to relax the resource constraint, migrants tend to remit back to their families in home countries. This study attempts to look at the impact of temporary external migration and remittances on child health outcomes as measured by height-for-age (HAZ) & weight-for-age z scores (WAZ) in Punjab, Pakistan. Further, we test for the presence of intra household resource allocation bias where boys get preferential treatment in term of health care as compared to girls. Using historic migration rates and number of banks in each district to instrument for external migration and remittances from overseas, respectively, we employ an Instrumental Variable Approach estimated through Two Stage Least Square and Treatment Effect Model. Our results suggest significant positive impact of external migration and remittances on both the indicators of child health outcomes. Further this study confirms the presence of increased bargaining power of women in households headed by females resulting in a greater share of resources being spent on girls relative to boys.
Researchers: Mydda Aslam and Rabia Arif (Lahore School of Economics)
XIII. Measuring Mother’s Empowerment Through Culture of Son Preference in Pakistan (2024 - Ongoing)
Abstract
This study highlights whether giving birth to a son plays a role in determining mother’s empowerment in Pakistan and in particular, if the birth-order of the son has any additional impact in uplifting the mother’s status within a household, using the Pakistan Demographic and Health Survey (PDHS) 2012-13. In Pakistan, the household’s economic conditions make parents treat their sons and daughters differently and ultimately, giving preference to sons over daughters, in terms of education, health and nutrition, as the social and economic utility of a son, overpowers that of a daughter. In the presence of this culture of son preference, if women then give birth to a son or a number of sons, then it should help empower them. The results of the study show having a son significantly helps in empowering mothers in Pakistan. In contrast, the son’s birth-order (both higher and lower) is not an important factor for improving mother’s empowerment. Mother’s empowerment is mainly driven by the number of sons, and age of the son, and these results are more pronounced in rural areas of Pakistan, and for mothers belonging to poor households.
Researchers: Aimal Tanvir and Rabia Arif (Lahore School of Economics)
XIV. Measuring Actual TFP Growth: Stripping away Omitted Price Bias and 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)
XV. ITT Estimates of Impact of Ramadan Exposure on Mothers and Children
Researchers: Theresa Thompson Chaudhry (Lahore School of Economics)
XVI. The BOP Crisis in Pakistan, Stabilization versus Growth (2024 - Ongoing)
Abstract
Pakistan’s BOP crisis, have increased in their frequency, duration and intensity, as preceding analyses of the current crisis have noted. This project will attempt to systematize some of the behavioural relationships that can be observed to hold over the past thirty years, and the efficacy of policy impact on them. It has been observed that there are large capital outflows. These comprise of the primary income account balance on the current account and domestic outflows from the capital account. As a result, the researchers propose that the following relationship exists between these variables. As exchange rate goes down the capital outflows will increase unless the interest rate are increased. If interest rates are held constant with devaluation, it leads to capital outflows. Thus, one proposal that is likely to work is controls of capital as it stabilizes the economy and does not dampen growth.
Researchers: Moazam Mahmood (Lahore School of Economics) and Shamyla Chaudry (Lahore School of Economics)
XVII. 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)
XVIII. Barriers to Product Upgradation in the Sialkot Surgical Goods Sector (2024 - 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, they investigate the extent to which fixed costs of innovation are a barrier to upgrading in the surgical-goods sector in Sialkot. If there are externalities in the process of innovation, there may be an important role for governments in subsidizing the costs of innovation. A leading policy idea is to provide matching grants, in which governments provide supplemental funding for projects chosen by individual firms. However, there has never been a rigorous randomized evaluation of such a program (Campos et al, 2012). The research team is conducting such an evaluation in the surgical-goods industry in Sialkot and plan to offer matching grants for innovations that increase exports.
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)
XIX. A General Equilibrium Macroeconomics Model for the Pakistan Economy (2024 - Ongoing)
Abstract
The Pakistani economy has struggled to gain momentum over the last decade and economic policy makers have failed to understand the impact of key decisions (such as the multiple IMF stabilization programs) on economic outcomes. One major reason for this is the lack of a formal model of the Pakistani economy to project key economic variables over time. ITC researchers have developed a macroeconomic model for Pakistan’s economy. The researchers have worked in collaboration to present a policy simulation tool which helps to provide estimates for macroeconomic aggregates using values for key policy variables. The model is both a policy simulation tool and both a didactic tool taught at the undergraduate level and will further the taught at the graduate level. The model can be used to simulate key macroeconomic variables such as: (i) aggregate demand, (ii) long-run growth rates, (iii) labor market outcomes, (iv) income distribution, (v) price levels, (vi) interest rates and (vii) exchange rates.
Researchers: Moazam Mahmood (Lahore School of Economics) and Azam Chaudhry (Lahore School of Economics)
XX. Business Confidence Surveys of the Business Community in Lahore
Researchers: Azam Chaudhry (Lahore School of Economics), Aymen Junaid and Theresa Chaudhry (Lahore School of Economics)
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)
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)
Innovation and