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International competitiveness and ex-ante treatment effects of CPEC on household welfare in Pakistan

Author

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  • Lubna Naz
  • Adeel Ali
  • Ambreen Fatima

Abstract

Purpose - This paper aims to presents one of the first direct micro-econometric impact of competitive industries (based on revealed comparative advantage [RCA] between Pakistan and China) on household welfare in Pakistan using semi-parametric matching technique. Design/methodology/approach - The study has also measured and identified the industrial competitiveness in both agricultural and non-agricultural (manufacturing) industries using RCA approach. RCA at the four-digit ISIC level are matched to household survey data (Pakistan Social and Living Standard Measurement) for 2013-2014 to represent the competitive industries in which the household’s higher earner is employed. Findings - The findings of the study reveal that the China–Pakistan ex-post treatment effect (industrial competitiveness) provides welfare-improving effects. Furthermore, on this behalf, this study further assesses ex-ante treatment effects of recently signed China–Pakistan Economic Corridor (CPEC) on household welfare and suggests that CPEC would boost further trade liberalization and, therefore, would lead to industrial competitiveness and hence economic growth. Originality/value - Paper contributes to two streams of literature. First, it measures and identifies the industrial competitiveness in both agricultural and non-agricultural industries using RCA approach; and second, it assesses the welfare of those households associated with these industries using semi-parametric propensity score matching technique.

Suggested Citation

  • Lubna Naz & Adeel Ali & Ambreen Fatima, 2018. "International competitiveness and ex-ante treatment effects of CPEC on household welfare in Pakistan," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 17(2), pages 168-186, May.
    • Handle: RePEc:eme:ijdipp:ijdi-05-2017-0100
    DOI: 10.1108/IJDI-05-2017-0100
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    Citations

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    Cited by:

    1. Lei Fan & Yunyun Zhang & Meilin Jin & Qiang Ma & Jing Zhao, 2022. "Does New Digital Infrastructure Promote the Transformation of the Energy Structure? The Perspective of China’s Energy Industry Chain," Energies, MDPI, vol. 15(23), pages 1-18, November.
    2. Ahmad Saad & Guan Xinping & Mariah Ijaz, 2019. "China-Pakistan Economic Corridor and Its Influence on Perceived Economic and Social Goals: Implications for Social Policy Makers," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    3. Khan, Iqrar Ahmad, 2021. "Rural-Urban Transition: A Challenge to Agricultural Productivity, Biodiversity and Food Security in Pakistan," ICDD Working Papers 37, University of Kassel, Fachbereich Gesellschaftswissenschaften (Social Sciences), Internatioanl Center for Development and Decent Work (ICDD).
    4. Khan, Iqrar Ahmad, 2022. "Rural-Urban Transition: A Challenge to Agricultural Productivity, Biodiversity and Food Security in Pakistan," ICDD Working Papers 38, University of Kassel, Fachbereich Gesellschaftswissenschaften (Social Sciences), Internatioanl Center for Development and Decent Work (ICDD).

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