case study 2 comparative economic development pakistan and bangladesh

Pakistan and Bangladesh: Comparative Economic Analysis (1971-2020)

26 Pages Posted: 13 Oct 2021

College of Economics & Social Development - Institute of Business Management

Date Written: September 9, 2021

The aim of this paper is to examine and conduct a comparative economic analysis between Pakistan and Bangladesh based on different economic indicators from 1971 to 2020. The methodology used in this study is primarily qualitative, with data mainly obtained from secondary sources. The findings of the study suggested that in terms of economic and social development, Bangladesh clearly surpassed Pakistan in all the domains. Bangladesh’s progressive and consistent economic approach with emphasis on economic empowerment of their population was the key towards Bangladesh’s success. Bangladesh dominated the following economic indicators: Current account balance, GDP growth rate, GDP per capita growth rate, and social development. In contrast, Pakistan lacked behind due to immersive political and economic instability caused by inconsistent political regimes and economic policies. The findings revealed that Pakistan’s: Exports % of GDP, Trade balance, Net income, Current account balance, GDP annual growth rate, GDP per capita annual growth rate, portrayed better performance in the first economic phase (1971-2000) than in the second economic phase (2000-2020).

Keywords: Pakistan, Bangladesh, GDP, Growth Rate, Social Development, Comparison

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Syed Saif Ur Rehman Shah (Contact Author)

College of economics & social development - institute of business management ( email ).

Korangi Creek Karachi Sindh, 75190 Pakistan

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Question: Answer the following questions regarding the case study 2 about the comparative economic development between Pakistan and Bangladesh (end of chapter 2): a. Why did Bangladesh score the same NHDI than Pakistan for 2011 even though at the time it was a poorer country than Pakistan according to income per capita and percent of poverty? Explain. b. Is it true

Answer the following questions regarding the case study 2 about the comparative economic development between Pakistan and Bangladesh (end of chapter 2):

a. Why did Bangladesh score the same NHDI than Pakistan for 2011 even though at the time it was a poorer country than Pakistan according to income per capita and percent of poverty? Explain.

b. Is it true that “Pakistan is a clear example of economic growth without development” . Justify your answer.

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Focus on understanding the components of the NHDI, which includes per capita income, average years of schooling, and poverty levels, and how these factors contribute to the overall score for Bangladesh and Pakistan.

a) The NHDI include the informations about the level of per capita income, average years of schooling, and the poverty level in the economy. The level of education in Bangladesh is relatively high. Therefore it fared well in term of educat …

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Do real exchange rate misalignments have threshold effects on economic growth? Asymmetric evidence from Pakistan

• Published: 28 September 2024
• Volume 57 , article number  181 , ( 2024 )

Cite this article

• Waqar Khalid   ORCID: orcid.org/0000-0002-5275-6665 1 ,
• Javed Iqbal 2 ,
• Nosheen Nasir 2 &
• Misbah Nosheen 3  

This study investigates the impact of real exchange rate misalignment on Pakistan’s economic growth across different identified threshold levels. The research makes three significant contributions to the applied macroeconomics literature. First, it employs a dynamic regression model to assess the primary factors determining the equilibrium real exchange rate (ERER). Second, it examines the asymmetric impact of real exchange rate misalignment on Pakistan’s economic growth using the nonlinear autoregressive distributed lag (NARDL) model. Third, through a threshold regression model inspired by Hansen (Hansen, Econometrica 68:575–603, 2000), it identifies the threshold values of the Pakistani rupee that can either promote or hinder economic growth. The study concludes that the Pakistani rupee experienced significant periods of both undervaluation and overvaluation between 1982 and 2022. Moreover, the analysis establishes that overvaluation impedes Pakistan's economic growth, while undervaluation stimulates it. Our findings suggest that the undervaluation of the Pakistani rupee promotes economic growth up to an estimated threshold of a 10.025% deviation from ERER is reached. In contrast, an overvalued Pakistani rupee can stimulate economic growth up to a 9.346% threshold. The study implies that Pakistan should avoid both overvaluation and undervaluation beyond these identified thresholds to sustainably enhance economic growth. Additionally, it recommends that appropriate fiscal and monetary policies be pursued to maintain the exchange rate close to the equilibrium rate.

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Source: Authors’ estimates (2024)

Data availability

The data supporting the findings of this study are available from the corresponding author upon reasonable request.

These models are based on the estimation of a reduced-form ERER regression.

For detailed explanations, refer to Siregar and Rajan ( 2006 ).

See Amor et al. ( 2023 ) for details.

According to Frenkel and Ros ( 2006 ), the RER affects unemployment through three channels: macroeconomic, labor-intensity, and development. The traditional argument is that depreciation boosts the competitiveness of domestic firms; thus, a depreciated RER boosts the competitiveness of domestic products, resulting in an increase in net exports. The subsequent growth in exports boosts demand for domestic activities, resulting in higher output and employment levels.

The same results were obtained using the Augmented Dickey-Fuller ( ADF ) and Phillips-Perron ( PP ) unit root tests.

The PEER approach serves as a long-run equilibrium concept employed to ascertain RERMIS through a filtered series (Driver and Westaway 2005 ). According to Kucsera ( 2007 ), this method ensures a smoother ERER compared to the BEER approach and is more easily interpretable.

Fiscal year 2001–02.

After analyzing annual data, we determined that a maximum of four lags is optimal. This selection of lags is based on the AIC and SBC criteria.

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GDP and exchange rate of Pakistan over the period 1960–2022 Source: WDI ( 2023 )

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Khalid, W., Iqbal, J., Nasir, N. et al. Do real exchange rate misalignments have threshold effects on economic growth? Asymmetric evidence from Pakistan. Econ Change Restruct 57 , 181 (2024). https://doi.org/10.1007/s10644-024-09752-4

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DOI : https://doi.org/10.1007/s10644-024-09752-4

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• Asymmetric analysis
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Drying hot red chilies: a comparative study of solar-gas-fired, tunnel, and conventional dryers.

1. Introduction

2. materials and methods, 2.1. experimental procedure, 2.2. conventional drying (cd), 2.3. solar-cum gas-fired dryer (sgd), 2.4. solar tunnel drying (std), 2.5. the moisture content of hot chilies, 2.6. moisture shrink, 2.7. the moisture removal rateof hot chilies, 2.8. measurement of color values for hot chilies, 3. results and discussion, 3.1. meteorological conditions during experiment, 3.2. moisture content of hot chilies, 3.3. the drying rate of hot chilies, 3.4. quality of dried red chilies, 4. conclusions, author contributions, data availability statement, conflicts of interest.

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Tang, L.; Chandio, F.A.; Shaikh, S.A.; Junejo, A.R.; Mari, I.A.; Khoso, H.B.; Hao, L.; Syed, T.N.; Ahmed, F. Drying Hot Red Chilies: A Comparative Study of Solar-Gas-Fired, Tunnel, and Conventional Dryers. Processes 2024 , 12 , 2104. https://doi.org/10.3390/pr12102104

Tang L, Chandio FA, Shaikh SA, Junejo AR, Mari IA, Khoso HB, Hao L, Syed TN, Ahmed F. Drying Hot Red Chilies: A Comparative Study of Solar-Gas-Fired, Tunnel, and Conventional Dryers. Processes . 2024; 12(10):2104. https://doi.org/10.3390/pr12102104

Tang, Lingdi, Farman Ali Chandio, Sher Ali Shaikh, Abdul Rahim Junejo, Irshad Ali Mari, Hyder Bakhsh Khoso, Li Hao, Tabinda Naz Syed, and Fiaz Ahmed. 2024. "Drying Hot Red Chilies: A Comparative Study of Solar-Gas-Fired, Tunnel, and Conventional Dryers" Processes 12, no. 10: 2104. https://doi.org/10.3390/pr12102104

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