EDITORIAL

ABSTRACT

Current research categorically studies two conceptually different but practically related concepts of product involvement level and demographic factors in the context of the relatively underresearched consumer base of Pakistan. It was established that the buying behavior of consumers is influenced by their gender, income level, and culture of respective cities where they reside and strongly moderated by the degree of involvement in a particular product category. Market segmentation on the basis of demographic factors and involvement level can lead to more precision in designing effective marketing strategies. In the current study, the authors also point out the sample biases that most previous studies in Pakistan exhibited. The focus of previous consumer behavior studies conducted in Pakistan was mostly metropolitan areas. The current study successfully gives evidence that to understand the intricacies of consumer behavior in a diversified society, the study sample should not be limited to metropolitan areas but should be extended to smaller cities and rural areas as well, because people in less commercially viable cities display different buying patterns. These findings are especially relevant for developing countries where there is great inequality in regional development.     

International tourism and consumer prices in Pakistan: a wavelet-based analysis

This study aims to investigate the relationship between the tourism activities and price level in Pakistan by using monthly data set from 1972 to 2016. In this study, aggregated as well as disaggregated price level have been considered. Co-integration results suggest significant long-run relationship between tourism and all price level of goods and services except fuel and lightning. Results of the wavelet transformation show a strong variation in short-run. The results of the wavelet transformation coherence also show an in-phase as well as out-phase both associations between the prices and tourism receipts in the mid-term and long-term periods.     

巴基斯坦风电发展现状及其政策研究

巴基斯坦政府十分重视可再生能源的利用与开发,制定了多种优惠政策,鼓励私人投资风电,促进风电产业的发展。尽管巴基斯坦目前还没有成规模的风电场,但其风电政策优惠,电价透明合理,内部收益率高,对独立发电商有较大吸引力。本文介绍了当前巴基斯坦发展风电的现状、政策,其电价政策对我国的风电市场具有一定的参考意义。     

Commercial Policy Reform in Pakistan: Opening up the Economy under Revenue Constraints

We examine the potential for further reform of sales tax and tariffs on final goods and on intermediate inputs in Pakistan. Analysis is conducted at two levels. First, optimal taxes are computed under the assumption that tax revenue is exogenous and pays for a public good, and these are compared with their current levels. Second, we consider two piecemeal reform exercises to examine whether there is further scope for replacing the two tariffs by sales tax in a revenue-neutral way. Both approaches suggest that there is considerable scope for further reducing tariffs on final goods, but not on intermediate inputs. JEL Code: F1, O2, O5     

Mean reverting financial leverage: theory and evidence from Pakistan

Grounding concepts of the two competing theories of capital structure (trade-off theory, pecking order theory) are quite opposite to each other. Trade-off theory claims that there is an optimal (target) capital structure and firms try to achieve that optimal (target) point. Whereas pecking order theory argues that there is no optimal (target) capital structure but the firms follow a specific pattern of financing. Using the two competing theoretic frameworks, this study applies Fisher-type panel unit root test to an unbalanced panel data of 13 115 firm-year observations of nonfinancial firms listed on Karachi Stock Exchange Pakistan spread over 38 years (1973–2010). Overall panel test results, for short-term, long-term, as well as total leverage support trade-off financing behaviour while individual firm results do not. Individual firm results show that only 16% of the firms have short-term target, 25% of the firms have long-term target and 12% of the firms have total target leverage ratio. Further, industry results explain that most of the industries do have target leverage ratios and classification of data into profitable and lossmaking firm-year observations explains that profitable firms clearly follow trade-off financing behaviour while the results for lossmaking firms do not support trade-off financing behaviour. Our study indicates that it is important for the government to ensure policies to develop well-balanced financial markets and to improve accountability systems.     

Determining the impact of age and LOS on job satisfaction: a case study of Pakistan automotive industry

This research was conducted to ascertain the impact of age and length of service (LOS) on job satisfaction in engineers of Pakistan public sector. Field survey was conducted using job satisfaction survey (JSS) questionnaire having closed-ended questions. Multistage sampling was conducted using a combination of cluster sampling, stratified sampling and random sampling techniques. Power and Precision software was used to determine the sample size. JSS questionnaires were administered amongst 225 electrical and mechanical engineers from five public sector organizations. 158 usable questionnaires were received and data were analyzed in SPSS. Statistical analyses showed existence of an open mouth U-shaped relationship between LOS/age and job satisfaction. It was found that age moderates relationship between LOS and job satisfaction. Non-responsiveness of senior engineers led to one of the limitations of this study. Results of this study can be used for policy-making decisions.     

Service multinational enterprises and linkages development in Pakistan

The development of various types of linkages is key to understanding the impact of multinational enterprises (MNEs) on the economic development of host markets. Using a qualitative research approach, we investigate the linkages created by IT MNEs in Pakistan. The findings suggest that these MNEs have created management, technological, diversification, and financial linkages, among others. Their creation is contingent and co‐determined by the MNEs' investment motives, their mandates, and embeddedness in the host market as well as the local technical capability. We highlight the contributions and implications of these linkages. Copyright © 2017 ASAC. Published by John Wiley & Sons, Ltd.     

Waste Not,Want Not: A Case Study on Food Waste in Restaurants of Lahore,Pakistan

ABSTRACT

Recently, there is growing focus on quantifying food waste problem and analyzing its causes due to an imminent challenge: feed nine billion people by 2050. Among developing countries, we focus on Pakistan which has the sixth largest population in the world and faces serious issues of food insecurity and malnourishment. Astoundingly, despite the gravity of the situation the available research on the issue is almost non-existent. Here, in this first-of-its-kind study for Pakistan we attempt to measure the quantum of food wastage and study its underlying reasons across restaurants in the country’s second largest urban center, Lahore, which is also popularly designated as “the culinary capital of Pakistan”. Segmenting restaurants according to the niche markets they target—as high-end, medium-end, and low-end—and using actual measures of daily wastage, we find overproduction and liability concerns as the prime reasons of excess food preparation and its improper disposal.     

Willingness to Pay for Pesticide Free Fruits: Evidence from Pakistan

ABSTRACT

This paper analyzes factors influencing consumption decision of pesticide free fruits (PFF) and estimates the willingness to pay (WTP) price premium for PFF in Pakistan. A contingent valuation survey of 200 households was conducted using face to face interview and payment card method. Results suggested that 93.5% respondents were WTP higher prices for PFF. Remarkably, around 35% respondents were WTP 16–20% higher prices and 24% respondents were WTP 6–10% higher prices for PFF than the existed conventional price. In addition, our ordered logit regression suggests that demographic and socio-economic variables such as age, education, income, household’s size and perception about health benefits are significantly associated with higher WTP for PFF.     

Standards and export performance in developing countries: Evidence from Pakistan

Several studies have analyzed the exporting pattern and performance of firms located in a developing country. However, there is limited work on the impact of standards on the performance of developing country exporting firms. This paper uses data from Pakistan to assess the effects of ISO 9000 certification on export sales and share of exports (relative to domestic and export sales) for textiles and the agro-food sector. As certification is not randomly assigned but there is ‘self-selection into treatment’, we use propensity matching methods to estimate the causal effect of certification on the change in the firms' value of export sales between 2000 and 2004. The results show that export performance is positively correlated with ISO 9000 certification.