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The Socio-economic Analysis of the Street Economy in the Twin Cities of Pakistan (Article)

Author

Listed:
  • Nasir Iqbal

    (Pakistan Institute of Development Economics, Islamabad.)

  • Saima Nawaz

    (Associate Professor, COMSATS University Islamabad (CUI), Islamabad.)

  • Muhammad Aqeel Anwar

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

The study provides a socio-economic analysis of the street economy using primary data based on a survey of 1,863 fixed street vendors operating in the Twin Cities of Pakistan. Descriptive analysis shows that street vendors, on average, make a significant profit of US$ 212 per month (29 percent of total monthly revenue). They chose to vend due to the lack of formal education and the unavailability of formal sector jobs. Vendors pay more than 51 percent of their operating cost (US$107 per month) as rent to shop owners to place carts/tables in front of shops. About 98 percent of vendors operate without legal protection (e.g. license/permit), leading to frequent evictions.

Suggested Citation

  • Nasir Iqbal & Saima Nawaz & Muhammad Aqeel Anwar, 2022. "The Socio-economic Analysis of the Street Economy in the Twin Cities of Pakistan (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(3), pages 335-363.
    • Handle: RePEc:pid:journl:v:61:y:2022:i:3:p:335-363
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    References listed on IDEAS

    as
    1. Nasir Iqbal & Masood Sarwar Awan, 2015. "Determinants of Urban Poverty: The Case of Medium Sized City in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 719-738.
    2. Nawaz, Saima & Iqbal, Nasir, 2021. "How cash transfers program affects environmental poverty among ultra-poor? Insights from the BISP in Pakistan," Energy Policy, Elsevier, vol. 148(PB).
    3. Diane Irankunda & Peter A.G. Van Bergeijk, 2020. "Financial Inclusion of Urban Street Vendors in Kigali," Journal of African Business, Taylor & Francis Journals, vol. 21(4), pages 529-543, October.
    4. Stephen L. Mehay & William R. Bowman, 2005. "Marital Status and Productivity: Evidence from Personnel Data," Southern Economic Journal, John Wiley & Sons, vol. 72(1), pages 63-77, July.
    5. Ebelechukwu Maduekwe & Walter Timo Vries & Gertrud Buchenrieder, 2020. "Measuring Human Recognition for Women in Malawi using the Alkire Foster Method of Multidimensional Poverty Counting," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 805-824, February.
    6. Awaworyi Churchill, Sefa & Iqbal, Nasir & Nawaz, Saima & Yew, Siew Ling, 2021. "Unconditional cash transfers, child labour and education: theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 437-457.
    7. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
    8. Stephen L. Mehay & William R. Bowman, 2005. "Marital Status and Productivity: Evidence from Personnel Data," Southern Economic Journal, John Wiley & Sons, vol. 72(1), pages 63-77, July.
    9. Nawaz, Saima, 2021. "Energy poverty, climate shocks, and health deprivations," Energy Economics, Elsevier, vol. 100(C).
    10. Alkire, Sabina & Roche, José Manuel & Vaz, Ana, 2017. "Changes Over Time in Multidimensional Poverty: Methodology and Results for 34 Countries," World Development, Elsevier, vol. 94(C), pages 232-249.
    11. Smith, Paula A. & Metzger, Michael R., 1998. "The return to education: Street vendors in Mexico," World Development, Elsevier, vol. 26(2), pages 289-296, February.
    12. Nasir Iqbal & Saima Nawaz, 2017. "Spatial Differences and Socioeconomic Determinants of Health Poverty," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 56(3), pages 221-248.
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