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Growth and Development Policy
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In our conversations with a wide range of researchers and practitioners, almost
everyone has agreed at the conceptual level that anti-export bias is a perennial
cause of balance of payments crises and stop-go growth in Pakistan. It is
recognized that there is a need for developing a comprehensive strategy for
escaping this vicious cycle of macroeconomic crises and subsequent painful
adjustments that have a disproportionately adverse effect on the poor segments
of the society. The teams led by Dr. Naved and Dr. Azam will initially
work on the following:
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Analytical studies on the nature and extent of the anti-export bias arising from
an overvalued exchange rate and the poor state of trade facilitation in Pakistan;
and studies on development strategies, complementary macro policies and institutionalized
incentives for moving the country from domestic demand (consumption)-led to export
(balanced)-led growth. |
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Analytical studies on institutionalized constraints
that have resulted in limited diversification of export markets and products; and studies on potential areas of comparative advantage
of Pakistan, particularly to explore newer ideas about comparative
advantage, such as how agglomeration economies (clustering) can create comparative
advantage in industries that were earlier not thought possible for labor-abundant
countries, for instance IT industry in India and surgical instruments in Pakistan. |
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Macroeconomic models for purposes of evaluating policy options, making short-term
economic forecasts, and supporting work on medium-term development strategies.
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Lahore School of Economics |