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1 |
ID:
185147
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Summary/Abstract |
This study examines poor households’ vulnerability to idiosyncratic and covariate shocks in Pakistan. First, it observes households’ socioeconomic, demographic, and geographic factors that influence the incidence of shocks. Second, it examines households coping strategies adopted to mitigate the negative effects of these shocks. For this purpose, we have studied the shock patterns in poor households and examined the role of the Benazir Income Support Program (BISP) in protecting these households against various shocks. Results indicate simultaneous exposure of idiosyncratic and covariate shocks to the targeted households. Moreover, with a low level of physical and financial assets owned by these households, they resort to coping strategies which are further damaging in nature. We also analyzed shock coping strategies of the sampled households and found that informal coping mechanisms are more prevalent among the poor households when hit by shocks. We have concluded that BISP is ineffective in protecting households in times of shocks and it is thus suggested that the transfers under this program should be generous in size and responsive to shocks in order to be an effective coping strategy for the poor.
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2 |
ID:
186836
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Summary/Abstract |
This paper empirically investigated the trade competitiveness and trade potential of Pakistan and ASEAN countries in the Chinese market. The study utilizes trade data for the period of 2003–2019 to assess the bilateral trade aspects by using an extended gravity equation. In addition, the PPML model and constant market share analysis are applied to examine trade potential and competitiveness, respectively. Market size, distance, trade openness, revealed comparative advantage position and common border play an important role in bilateral trade of Pakistan and ASEAN with China, and coefficients of all these variables comply with the economic theory and are statistically significant. Pakistan along with Brunei, Cambodia, Laos, Myanmar, Philippines, and Thailand has great trade potential in the Chinese market. Particularly Cambodia and Vietnam are enjoying the highest competitive advantage as compared to other ASEAN countries. Pakistan’s export performance in China’s market relies on the market distribution effect. Based on this study, we have discussed country-specific future policy discourse for Pakistan and ASEAN countries in detail.
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