Pub Date : 2024-06-01DOI: 10.52223/econimpact.2024.6202
Muhammad Ghulam Shabeer, Ms. Azra, A. Anwar, Rabia Zubair
Pakistan stands at a crossroads where the burgeoning debt servicing cost of Rs 7.3 trillion is going to swallow the lion’s share of the projected revenue of Rs 9.2 trillion. This revenue also includes the Rs 5.2 trillion share allocated to the provinces. It is essential to study the causes of such a high debt stock rate, which requires a large outflow of foreign reserves. This study took 50 years of data about Pakistan and analyzed certain determinants of debt stock including debt service cost, budget deficit, military expenditure, import bill, and population. ARDL was used after finding a mixed order for stationery. The short and long-run analysis is undertaken. The Result shows that debt cost has a significant negative impact on debt stock, whereas budget deficit, military expenditure, import, and population have a significant positive impact on national debt. Based on the results, this study suggests that military expenditure and imports should be decreased to control national debt. The population must be maintained at an optimal level. The government should not go for a budget deficit as it requires further loans. The Results were checked for robustness and the model was stable.
{"title":"Unlocking Pakistan's Debt Conundrum: A Deep Dive into the Dynamics of Debt Servicing and External Debt Stock","authors":"Muhammad Ghulam Shabeer, Ms. Azra, A. Anwar, Rabia Zubair","doi":"10.52223/econimpact.2024.6202","DOIUrl":"https://doi.org/10.52223/econimpact.2024.6202","url":null,"abstract":"Pakistan stands at a crossroads where the burgeoning debt servicing cost of Rs 7.3 trillion is going to swallow the lion’s share of the projected revenue of Rs 9.2 trillion. This revenue also includes the Rs 5.2 trillion share allocated to the provinces. It is essential to study the causes of such a high debt stock rate, which requires a large outflow of foreign reserves. This study took 50 years of data about Pakistan and analyzed certain determinants of debt stock including debt service cost, budget deficit, military expenditure, import bill, and population. ARDL was used after finding a mixed order for stationery. The short and long-run analysis is undertaken. The Result shows that debt cost has a significant negative impact on debt stock, whereas budget deficit, military expenditure, import, and population have a significant positive impact on national debt. Based on the results, this study suggests that military expenditure and imports should be decreased to control national debt. The population must be maintained at an optimal level. The government should not go for a budget deficit as it requires further loans. The Results were checked for robustness and the model was stable.","PeriodicalId":502720,"journal":{"name":"Journal of Economic Impact","volume":"57 16","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141275813","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-16DOI: 10.52223/econimpact.2024.6107
Hafsa Batool, Urooj Maqbool, Saba Gulzar
The study holds significance in revealing how ensuring fair access to education can fuel economic growth, promote social cohesion, and guide policymaking for sustainable development. The objective of current research is to empirically examine the relationship between gender disparity in educational attainment within social, and ecological systems. The data is collected for the period 1990-2022. In the presence of cross-sectional dependence 2nd generation unit root test is applied. CS-ARDL technique is considered to examine the short-run as well as the long-run relationship between Gender disparity in education and the socio-ecological system. Achieving environmental sustainability and minimizing our ecological footprints depend critically on gender parity in education. Equal access to high-quality education gives women the knowledge, analytical abilities, and self-assurance to stand up for their communities and themselves. Findings describe that in the long run, there is a statistically significant negative correlation between the GINI-Coefficient and school enrollment tertiary and School enrollment primary. This indicates that, over time, a decrease in income disparity is linked to an increase in enrolment in primary and postsecondary education. In the long run, the GINI-Coefficient and Secondary school enrollment has a positive and statistically significant relationship. The data in Model 2 appear to indicate that the relationship between education and environmental sustainability is more intricate than the EKC hypothesis predicts. Higher education can raise one's knowledge and understanding of environmental issues, but it can also increase consumption and have an adverse effect on the environment. The findings of the study suggest that implementing policies with the goal of removing obstacles to education based on gender. This could entail giving families financial incentives to send their daughters to school and making sure that all genders have access to high-quality education.
{"title":"Equal Educational Opportunities: A Catalyst for Sustainable Economic Development","authors":"Hafsa Batool, Urooj Maqbool, Saba Gulzar","doi":"10.52223/econimpact.2024.6107","DOIUrl":"https://doi.org/10.52223/econimpact.2024.6107","url":null,"abstract":"The study holds significance in revealing how ensuring fair access to education can fuel economic growth, promote social cohesion, and guide policymaking for sustainable development. The objective of current research is to empirically examine the relationship between gender disparity in educational attainment within social, and ecological systems. The data is collected for the period 1990-2022. In the presence of cross-sectional dependence 2nd generation unit root test is applied. CS-ARDL technique is considered to examine the short-run as well as the long-run relationship between Gender disparity in education and the socio-ecological system. Achieving environmental sustainability and minimizing our ecological footprints depend critically on gender parity in education. Equal access to high-quality education gives women the knowledge, analytical abilities, and self-assurance to stand up for their communities and themselves. Findings describe that in the long run, there is a statistically significant negative correlation between the GINI-Coefficient and school enrollment tertiary and School enrollment primary. This indicates that, over time, a decrease in income disparity is linked to an increase in enrolment in primary and postsecondary education. In the long run, the GINI-Coefficient and Secondary school enrollment has a positive and statistically significant relationship. The data in Model 2 appear to indicate that the relationship between education and environmental sustainability is more intricate than the EKC hypothesis predicts. Higher education can raise one's knowledge and understanding of environmental issues, but it can also increase consumption and have an adverse effect on the environment. The findings of the study suggest that implementing policies with the goal of removing obstacles to education based on gender. This could entail giving families financial incentives to send their daughters to school and making sure that all genders have access to high-quality education.","PeriodicalId":502720,"journal":{"name":"Journal of Economic Impact","volume":"28 42","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140697086","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-21DOI: 10.52223/econimpact.2024.6105
Syed Taha Fraz Haider Kazmi, Burhan Rasheed, Zohair Farooq Malik, Amer Shakeel, M. Awais Gulzar
The core aim of the financial reports is to provide a firm’s annual results of financial performance and position to stakeholders on time. Several accounting scandals led to the default of many large-scale corporations, leading to investors’ lack of confidence in the reliability of financial information and also putting a question mark on the effectiveness of internal control mechanisms and external audits. Business managers of financially distressed firms use the choice of accrual accounting methods which gives them leverage to misuse their powers and expropriate stakeholders by showing good financial results. So, this study fills this gap by investigating the presence of Financial Distress (FD) and its effect on Earnings Management (EM) with the moderating role of Audit Quality (AQ). The sample of this study contains the data of 96 non-financial listed companies for the period 2017-2022 on the Pakistan Stock Exchange (PSX). This study uses the discretionary accruals as a proxy for the EM and Z-score for FD. The results and analysis find that FD and EM have a significant positive relationship, which reveals that corporate managers of distressed companies do EM while AQ weakens this relationship. This study recommends that professional bodies, regulatory authorities, and corporate governance institutions must design policies that restrict corporate managers from getting involved in earning management practices, especially in the time of FD.
财务报告的核心目的是及时向利益相关者提供公司的年度财务业绩和状况。几起会计丑闻导致许多大型企业违约，使投资者对财务信息的可靠性缺乏信心，也对内部控制机制和外部审计的有效性打上了问号。陷入财务困境的企业的经营管理者会选择权责发生制会计方法，这就为他们滥用职权、通过展示良好的财务业绩来侵占利益相关者提供了筹码。因此，本研究通过研究财务困境（FD）的存在及其对收益管理（EM）的影响，以及审计质量（AQ）的调节作用，填补了这一空白。本研究的样本包含巴基斯坦证券交易所（PSX）96 家非金融类上市公司 2017-2022 年期间的数据。本研究使用全权应计制作为 EM 的替代变量，并使用 Z 值作为 FD 的替代变量。结果和分析发现，FD 和 EM 有着显著的正相关关系，这揭示了困境公司的企业管理者会做 EM，而 AQ 则会削弱这种关系。本研究建议，专业机构、监管当局和公司治理机构必须制定政策，限制公司经理参与收益管理实践，尤其是在 FD 时期。
{"title":"Impact of Financial Distress on Earnings Management with the Moderating Role of Audit Quality: Evidence from Pakistan","authors":"Syed Taha Fraz Haider Kazmi, Burhan Rasheed, Zohair Farooq Malik, Amer Shakeel, M. Awais Gulzar","doi":"10.52223/econimpact.2024.6105","DOIUrl":"https://doi.org/10.52223/econimpact.2024.6105","url":null,"abstract":"The core aim of the financial reports is to provide a firm’s annual results of financial performance and position to stakeholders on time. Several accounting scandals led to the default of many large-scale corporations, leading to investors’ lack of confidence in the reliability of financial information and also putting a question mark on the effectiveness of internal control mechanisms and external audits. Business managers of financially distressed firms use the choice of accrual accounting methods which gives them leverage to misuse their powers and expropriate stakeholders by showing good financial results. So, this study fills this gap by investigating the presence of Financial Distress (FD) and its effect on Earnings Management (EM) with the moderating role of Audit Quality (AQ). The sample of this study contains the data of 96 non-financial listed companies for the period 2017-2022 on the Pakistan Stock Exchange (PSX). This study uses the discretionary accruals as a proxy for the EM and Z-score for FD. The results and analysis find that FD and EM have a significant positive relationship, which reveals that corporate managers of distressed companies do EM while AQ weakens this relationship. This study recommends that professional bodies, regulatory authorities, and corporate governance institutions must design policies that restrict corporate managers from getting involved in earning management practices, especially in the time of FD.","PeriodicalId":502720,"journal":{"name":"Journal of Economic Impact","volume":"34 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140442410","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-21DOI: 10.52223/econimpact.2024.6104
Sumaira Saeed, Miraj ul Haq, A. Bhatti
High-quality products are always in demand for both local and international markets. The demand for such products can be increased by the product sales at a domestic level. It can also be helpful to increase the export flows of an economy and hence improve the trade flows. Other factors have a moderating role in determining the relationship between export product quality and trade flows. The objective of this study is to examine the role of moderating variables, which are used to check the strength of the above relationship. There are three variables: financial constraints, firm heterogeneity, and R&D activities are taken as moderators. For this purpose, the data is taken from annual financial reports of non-financial firms which are listed on the Pakistan Stock Exchange. Also, some country-level data is taken from the Pakistan Economic Survey. The objective of the study was achieved by using panel techniques Fixed Effect, Random Effect Model for the period of 1999 to 2020. It is found that firm heterogeneity and R&D activities have positive and financial constraints have negative but significant effects on strengthening the relationship between product quality and export flows. Based on our findings, the government should provide R&D funds and financial aid programs for new investors to improve product quality and increase their sales in local and international markets.
{"title":"The Role of Moderators on Product Quality and Export Flows: The Case of Pakistan","authors":"Sumaira Saeed, Miraj ul Haq, A. Bhatti","doi":"10.52223/econimpact.2024.6104","DOIUrl":"https://doi.org/10.52223/econimpact.2024.6104","url":null,"abstract":"High-quality products are always in demand for both local and international markets. The demand for such products can be increased by the product sales at a domestic level. It can also be helpful to increase the export flows of an economy and hence improve the trade flows. Other factors have a moderating role in determining the relationship between export product quality and trade flows. The objective of this study is to examine the role of moderating variables, which are used to check the strength of the above relationship. There are three variables: financial constraints, firm heterogeneity, and R&D activities are taken as moderators. For this purpose, the data is taken from annual financial reports of non-financial firms which are listed on the Pakistan Stock Exchange. Also, some country-level data is taken from the Pakistan Economic Survey. The objective of the study was achieved by using panel techniques Fixed Effect, Random Effect Model for the period of 1999 to 2020. It is found that firm heterogeneity and R&D activities have positive and financial constraints have negative but significant effects on strengthening the relationship between product quality and export flows. Based on our findings, the government should provide R&D funds and financial aid programs for new investors to improve product quality and increase their sales in local and international markets.","PeriodicalId":502720,"journal":{"name":"Journal of Economic Impact","volume":"50 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140442399","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mining businesses are problematic in developing countries because they intrude on farming ecologies, rendering arable lands almost unavailable to farmers and making them unproductive. This paper expounds on the impact of agricultural land loss on mining activities in Kenema, as farming is the primary source of income for the locals; nevertheless, small-farm holdings are a definitive characteristic of this district. Using perceptions-based data gathered from 358 respondents, the software STATA 14 was employed to analyse the ordinal logit model. The results suggest that though mining operations gave the community quick income and short-term jobs, the negative impacts on farmers’ livelihood and outcomes surpass the benefits. The challenges farmers face from mining activities are Water pollution, displacement from their lands, and agricultural land degradation, and most get into illegal mining due to these constraints. This is mirrored in the average cultivation area of about 4 acres, with a relatively small harvest and an average monthly farm income of less than USD 40. Moreover, the results disclosed that the mines had increased land concession with less or no land reclamation or restoration. Therefore, it is recommended that all parties involved use a standardized method of communication that will prevent mining-related farmland encroachment. Moreover, it is good that authorities empower environmental law-enforcing bodies to monitor mining operations closely to ensure total compliance with the laws of the land management system.
在发展中国家，采矿业是一个问题，因为它们侵占了农业生态，使农民几乎无法使用可耕地，并使其失去生产力。本文阐述了农田流失对凯内马采矿活动的影响，因为农业是当地人的主要收入来源；然而，小农场是该地区的一个显著特点。利用从 358 名受访者那里收集到的基于认知的数据，使用 STATA 14 软件对序对数模型进行了分析。结果表明，虽然采矿活动给社区带来了快速收入和短期工作，但对农民生计和成果的负面影响超过了收益。采矿活动给农民带来的挑战包括水污染、流离失所和农田退化。农民的平均耕地面积约为 4 英亩，收成相对较少，月均农业收入不足 40 美元。此外，调查结果显示，矿山增加了土地出让金，但很少或根本没有进行土地复垦或恢复。因此，建议有关各方采用标准化的沟通方法，防止与采矿有关的侵占农田行为。此外，当局最好授权环境执法机构密切监督采矿作业，以确保完全遵守土地管理制度的法律。
{"title":"Farmland Loss and Livelihood Effects: Diamond and Gold Mining Implications on Farmers’ Sustainability in Sierra Leone","authors":"Braima Pascal Komba, Almazea Fatima, Khalid Mushtaq, Sarfraz Hassan","doi":"10.52223/econimpact.2023.5309","DOIUrl":"https://doi.org/10.52223/econimpact.2023.5309","url":null,"abstract":"Mining businesses are problematic in developing countries because they intrude on farming ecologies, rendering arable lands almost unavailable to farmers and making them unproductive. This paper expounds on the impact of agricultural land loss on mining activities in Kenema, as farming is the primary source of income for the locals; nevertheless, small-farm holdings are a definitive characteristic of this district. Using perceptions-based data gathered from 358 respondents, the software STATA 14 was employed to analyse the ordinal logit model. The results suggest that though mining operations gave the community quick income and short-term jobs, the negative impacts on farmers’ livelihood and outcomes surpass the benefits. The challenges farmers face from mining activities are Water pollution, displacement from their lands, and agricultural land degradation, and most get into illegal mining due to these constraints. This is mirrored in the average cultivation area of about 4 acres, with a relatively small harvest and an average monthly farm income of less than USD 40. Moreover, the results disclosed that the mines had increased land concession with less or no land reclamation or restoration. Therefore, it is recommended that all parties involved use a standardized method of communication that will prevent mining-related farmland encroachment. Moreover, it is good that authorities empower environmental law-enforcing bodies to monitor mining operations closely to ensure total compliance with the laws of the land management system.","PeriodicalId":502720,"journal":{"name":"Journal of Economic Impact","volume":" 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139140131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-30DOI: 10.52223/econimpact.2023.5308
Sidra Tahir, Saira Baloch
Working capital management is a crucial instrument and one of the key aspects of any business management. It is considered as an accounting technique to maintain the organization's liquidity and financial balance and is regarded as a critical part of financial management in the company. This study emphasizes on investigating the role played by working capital management in enhancing the profitability of companies from the manufacturing sector listed in Pakistan stock exchange during the period 2018-2022. Return on equity and return on assets are used as the profitability measures; however, account receivable turnover, inventory turnover and cash conversion cycle are used as the measures of working capital management. To evaluate the results, the least square regression model is used. The results show that inventory turnover has a significant positive association with both ROA and ROE, which implies that inventory management and sales acceleration have a positive effect on the company's return on assets and return on equity. Similarly, the association of accounts receivable turnover with ROA and ROE is also significant and positive, demonstrating that good credit management and prompt receivables collection improve the return on equity and assets. The research also reveals a significant positive association of both ROA and ROE with the cash conversion cycle. Higher returns on assets and equity are connected with a higher cash conversion cycle. The results suggested that the managers should speed up the collection of receivables as quickly as possible and quickly sell the inventory so that the cash thus generated can be reinvested in productive assets, which can increase the company’s profitability. The study's findings provide an important guideline to financial managers in managing the appropriate level of working capital to enhance firms’ profitability.
{"title":"Role of Working Capital Management in Enhancing Firm Profitability: An Empirical Study on the Manufacturing Companies of Pakistan","authors":"Sidra Tahir, Saira Baloch","doi":"10.52223/econimpact.2023.5308","DOIUrl":"https://doi.org/10.52223/econimpact.2023.5308","url":null,"abstract":"Working capital management is a crucial instrument and one of the key aspects of any business management. It is considered as an accounting technique to maintain the organization's liquidity and financial balance and is regarded as a critical part of financial management in the company. This study emphasizes on investigating the role played by working capital management in enhancing the profitability of companies from the manufacturing sector listed in Pakistan stock exchange during the period 2018-2022. Return on equity and return on assets are used as the profitability measures; however, account receivable turnover, inventory turnover and cash conversion cycle are used as the measures of working capital management. To evaluate the results, the least square regression model is used. The results show that inventory turnover has a significant positive association with both ROA and ROE, which implies that inventory management and sales acceleration have a positive effect on the company's return on assets and return on equity. Similarly, the association of accounts receivable turnover with ROA and ROE is also significant and positive, demonstrating that good credit management and prompt receivables collection improve the return on equity and assets. The research also reveals a significant positive association of both ROA and ROE with the cash conversion cycle. Higher returns on assets and equity are connected with a higher cash conversion cycle. The results suggested that the managers should speed up the collection of receivables as quickly as possible and quickly sell the inventory so that the cash thus generated can be reinvested in productive assets, which can increase the company’s profitability. The study's findings provide an important guideline to financial managers in managing the appropriate level of working capital to enhance firms’ profitability.","PeriodicalId":502720,"journal":{"name":"Journal of Economic Impact","volume":" 13","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139138366","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-30DOI: 10.52223/econimpact.2023.5311
Tanvir Khaliq Shami, M. Naseer, Muhammad Khalid Bashir, Saher Jabeen, Sultan Ali Adil, Muhammad Shoaib Naseer, Nimra Amar
Potato is amongst most important vegetables being used in kitchens of ordinary and common men. The income elasticity of demand of potato is relatively high as compared with other vegetables. In Pakistan, the traditional fruit and vegetable markets and considered to be the places of pure competition and farmers are linked to these markets via different marketing channels. This study delves into the analysis of optimal marketing channels within the vegetable supply chain, with a focus on understanding the factors that influence the selection of these channels. The study used cross-sectional primary data gathered from different supply chain actors, including 120 potato growers, 20 retailers, 20 consumers, 16 commission agents, and 16 wholesalers from two districts of Punjab, namely Okara and Chinote. This research employs a two-fold methodology. First, it involves the identification of the optimal marketing channel among five alternatives using a unique ranking technique methodology. Second, it employs regression analysis with binary endogenous treatment to discern the factors affecting the choice of marketing channels. The study sheds light on the intricacies of marketing channel decisions in the vegetable supply chain, offering insights into the preferences and considerations of stakeholders in the Okara and Chinote districts of Punjab, Pakistan. The findings of the study contribute not only to the understanding of optimal channel selection but also to the broader knowledge of the factors that influence these decisions. These insights are valuable for practitioners, policymakers, and researchers aiming to enhance the efficiency and effectiveness of marketing strategies within the agricultural sector, benefiting farming communities and the country as a whole.
{"title":"Analyzing Optimal Marketing Channels in the Vegetable Supply Chain: Exploring Factors Influencing Marketing Channel Selection","authors":"Tanvir Khaliq Shami, M. Naseer, Muhammad Khalid Bashir, Saher Jabeen, Sultan Ali Adil, Muhammad Shoaib Naseer, Nimra Amar","doi":"10.52223/econimpact.2023.5311","DOIUrl":"https://doi.org/10.52223/econimpact.2023.5311","url":null,"abstract":"Potato is amongst most important vegetables being used in kitchens of ordinary and common men. The income elasticity of demand of potato is relatively high as compared with other vegetables. In Pakistan, the traditional fruit and vegetable markets and considered to be the places of pure competition and farmers are linked to these markets via different marketing channels. This study delves into the analysis of optimal marketing channels within the vegetable supply chain, with a focus on understanding the factors that influence the selection of these channels. The study used cross-sectional primary data gathered from different supply chain actors, including 120 potato growers, 20 retailers, 20 consumers, 16 commission agents, and 16 wholesalers from two districts of Punjab, namely Okara and Chinote. This research employs a two-fold methodology. First, it involves the identification of the optimal marketing channel among five alternatives using a unique ranking technique methodology. Second, it employs regression analysis with binary endogenous treatment to discern the factors affecting the choice of marketing channels. The study sheds light on the intricacies of marketing channel decisions in the vegetable supply chain, offering insights into the preferences and considerations of stakeholders in the Okara and Chinote districts of Punjab, Pakistan. The findings of the study contribute not only to the understanding of optimal channel selection but also to the broader knowledge of the factors that influence these decisions. These insights are valuable for practitioners, policymakers, and researchers aiming to enhance the efficiency and effectiveness of marketing strategies within the agricultural sector, benefiting farming communities and the country as a whole.","PeriodicalId":502720,"journal":{"name":"Journal of Economic Impact","volume":" 19","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139140460","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-30DOI: 10.52223/econimpact.2023.5310
M. Naseer, Amar Razzaq, Muhammad Ashfaq, M. Mehdi, Sajid Karim, Muhammad Shoaib Naseer
Recent evidence suggests that Modern Supply Chains (MSC) in the agrifood industry have the potential to improve production efficiency and scale. However, the inclusion of smallholders for Sustainable Supply Chain Development (SSCD) is a growing concern for policymakers aiming to increase the profitability of farming communities. This study investigates the efficiency and inclusiveness of farmers in the citrus supply chain at the upstream level and factors responsible for SSCD using survey data from the Punjab province of Pakistan. The study employs endogenous treatment effect and principal component analysis apart from the descriptive analysis to explore study objectives. Results indicate that large farmers with abundant resources tend to participate in MSC, whereas smallholders are more likely to be inclined to Traditional Supply Chain (TSC) networks. The study also finds that participating in MSC has a positive impact on farmers' efficiency, and factors such as off-farm income, orchard size, education level, and access to extension services significantly affect profitability. The results of the principal component analysis revealed that for SSCD, six sets of factors, such as performance and quality, risk and climate, economics and market exploitation, knowledge and information, geographic and transportation, and innovation capability, are addressable. Therefore, these results suggest that policymakers should provide training programs, agriculture extension services, improved infrastructure, and educational facilities in rural areas to help smallholders alleviate poverty by creating sustainability in the agri-food industry.
{"title":"Beyond Subsistence: Linking Citrus Smallholders to High-Value Markets for Sustainable Supply Chain Development in Pakistan","authors":"M. Naseer, Amar Razzaq, Muhammad Ashfaq, M. Mehdi, Sajid Karim, Muhammad Shoaib Naseer","doi":"10.52223/econimpact.2023.5310","DOIUrl":"https://doi.org/10.52223/econimpact.2023.5310","url":null,"abstract":"Recent evidence suggests that Modern Supply Chains (MSC) in the agrifood industry have the potential to improve production efficiency and scale. However, the inclusion of smallholders for Sustainable Supply Chain Development (SSCD) is a growing concern for policymakers aiming to increase the profitability of farming communities. This study investigates the efficiency and inclusiveness of farmers in the citrus supply chain at the upstream level and factors responsible for SSCD using survey data from the Punjab province of Pakistan. The study employs endogenous treatment effect and principal component analysis apart from the descriptive analysis to explore study objectives. Results indicate that large farmers with abundant resources tend to participate in MSC, whereas smallholders are more likely to be inclined to Traditional Supply Chain (TSC) networks. The study also finds that participating in MSC has a positive impact on farmers' efficiency, and factors such as off-farm income, orchard size, education level, and access to extension services significantly affect profitability. The results of the principal component analysis revealed that for SSCD, six sets of factors, such as performance and quality, risk and climate, economics and market exploitation, knowledge and information, geographic and transportation, and innovation capability, are addressable. Therefore, these results suggest that policymakers should provide training programs, agriculture extension services, improved infrastructure, and educational facilities in rural areas to help smallholders alleviate poverty by creating sustainability in the agri-food industry.","PeriodicalId":502720,"journal":{"name":"Journal of Economic Impact","volume":" 39","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139141205","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-26DOI: 10.52223/econimpact.2023.5305
Raza Ullah, Iqra Sarwar, Syed Muhammad Amir, Muhammad Rafay Muzamil, Ehsan Inamullah
Risk attitude and risk perceptions are two crucial factors that could influence an individual's investment decisions. In developing countries like Pakistan, the whole society experiences different risks; however, financial risk is an essential factor affecting investors' decisions. This study used a dataset of 120 respondents collected through face-to-face interviews from two districts of Punjab province. A logit model is used to assess the impact of various socio-economic and behavioral factors on respondents' decisions to invest the borrowed money in enterprises. The findings revealed that investment in low-risk enterprises and diversification of income were the two main strategies adopted by the survey respondents. The results further revealed that health risk perception has positive while risk tolerance has a negative influence on the decision to invest in low-risk enterprises to mitigate the adverse consequences of risks. The findings also revealed that education and the adoption of diversification of income sources are positively correlated, while the perception of non-repayment and coefficient of location are negatively correlated with the adoption of diversification of income sources. Additionally, the study recommends that the Government should make sustainable and investor-friendly credit policies and educate the general public on how to use credit efficiently.
{"title":"Risk Tolerance and Investment Decisions among Credit Beneficiaries","authors":"Raza Ullah, Iqra Sarwar, Syed Muhammad Amir, Muhammad Rafay Muzamil, Ehsan Inamullah","doi":"10.52223/econimpact.2023.5305","DOIUrl":"https://doi.org/10.52223/econimpact.2023.5305","url":null,"abstract":"Risk attitude and risk perceptions are two crucial factors that could influence an individual's investment decisions. In developing countries like Pakistan, the whole society experiences different risks; however, financial risk is an essential factor affecting investors' decisions. This study used a dataset of 120 respondents collected through face-to-face interviews from two districts of Punjab province. A logit model is used to assess the impact of various socio-economic and behavioral factors on respondents' decisions to invest the borrowed money in enterprises. The findings revealed that investment in low-risk enterprises and diversification of income were the two main strategies adopted by the survey respondents. The results further revealed that health risk perception has positive while risk tolerance has a negative influence on the decision to invest in low-risk enterprises to mitigate the adverse consequences of risks. The findings also revealed that education and the adoption of diversification of income sources are positively correlated, while the perception of non-repayment and coefficient of location are negatively correlated with the adoption of diversification of income sources. Additionally, the study recommends that the Government should make sustainable and investor-friendly credit policies and educate the general public on how to use credit efficiently.","PeriodicalId":502720,"journal":{"name":"Journal of Economic Impact","volume":"101 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139157191","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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