Journal of Economic Impact 2021-08-31T00:00:00+00:00 Editorial Office Open Journal Systems <p class="justify">Journal of Economic Impact (JEI) welcomes all research articles relevant to economics and other relevant social science subjects. The journal of Economic Impact aims to provide an opportunity and a forum to communicate relevant and current issues in the area of Economics and its allied subjects. The objective of this journal is to publish prolific novel scientific work while making them freely available for the scholarly world. Journal of Economic Impact is an open access journal. Abstracts and full texts of all articles published in the Journal of Economics Impact can be read online without any form of restriction.</p> Africa’s Trade with China and US: Has COVID-19 Changed the Trends of Trade? 2021-04-02T10:12:48+00:00 Adesola Ibironke <p>Africa’s trade with China and the US is one of the international issues affecting development in the continent. This paper, therefore, examines the effects of COVID-19 on Africa’s trade with the two countries by investigating whether the pandemic has changed the trends of the trade. The article explores the responses of the individual trade of China and the US with Africa to their own shocks, without and with the pandemic, using the vector autoregressive (VAR) model and monthly data covering 1970m01 (January 1970) to 2020m07 (July 2020). The results show that China’s trade performs better while responding to a shock to America’s trade than America’s trade does while responding to a shock to China’s trade, without and with COVID-19. This finding suggests that China has a stronger trade footing in Africa and that COVID-19 had not changed the trends of Africa’s trade with China and America, even with the impact of the pandemic on China. China’s dominant trade status in Africa is probably due to the country’s large investment and aid in the continent. The key policy focus of Africa on trading with China and the US should therefore be how to achieve optimum trilateral trade thresholds in the face of potential trade-offs.</p> 2021-07-26T00:00:00+00:00 Copyright (c) 2021 Adesola Ibironke Does Road Traffic Congestion Increase Fuel Consumption of Households in Kathmandu City? 2021-06-03T11:26:32+00:00 Raghu Bista Surendra Paneru <p class="Default" style="text-align: justify;"><span style="font-size: 10.0pt;">The growth of vehicle and road traffic congestion is characteristics of urbanization and urban city and indicators of urban life in developing countries. In Nepal, non-economic factors and non-state factors have accelerated unexpectedly and haphazardly urbanization process, although the country was reengineered into seven provincial federal structure. In this backdrop, this paper empirically examines the growth of traffic congestion and its impact on urban households and livelihood based on 160 vehicle owners and users’ survey at six major traffic routes of two urban cities by applying mixed analytical methods (qualitative cum quantitative), descriptive statistics and multiple regression model. The descriptive statistics result of the study reveals nearly 94 percent acceptance level of vehicle owners and users about the growth of traffic congestion. Despite short distances of the road i.e. 2-4 kilometers and vehicle efficiency, the growth of traffic congestion increases 14036-liters fuel additional consumption. Per month, additional cost of fuel is estimated at 18,808 US dollars for a sum of distance i.e. 72,992 km between residence location and workplace each month. In the case of commuters, the estimation result of the study is 1188 hours of additional time loss with 6706 US dollars’ worth per month. The estimation of total economic loss is 25514 US dollars per month. Specifically, per month, economic loss of doctors and taxi drivers is 6556 US dollars but teachers and bankers have not economic loss.</span></p> 2021-07-29T00:00:00+00:00 Copyright (c) 2021 Raghu Bista, Surendra Paneru Residential Electricity Consumers and Increasing Block Pricing Policy in Pakistan: Evidence Based on Household Level Primary Data 2021-07-03T11:44:24+00:00 Sania Malik <p class="1JEI-ABSTRACT">The purpose of this paper is to explore the efficacy of increasing block electricity pricing (IBEP) which was imposed in 2013 by the Pakistani government. The main objective of this policy is rational resource allocation and to lower the cross-subsidization to the residential sector by two other major sectors such as commerce and industry. The study is based on primary data which is collected through questionnaires from four tehsils of district Sargodha in rural as well as the urban regions. About 54.6% of households understand the electricity price scheme (IBEP) while urban users are more aware as compared to rural but urban electricity consumption is higher due to high use of home appliances. By using the regression model the elasticity of residential electricity consumption is estimated for heterogeneous consumers. The upper blocks of electricity consumption are more sensitive to price increases (e.g., the elasticity of the first to fourth block is -0.391, -0.988, -1.229, -0.955 respectively) except in the fifth block (-0.489) which indicates that higher income group pays more attention to the standard of living. The increase in the number of trees also affects the price elasticity of residential electricity use and positively influences saving behaviour. The policy which was implemented from a welfare point of view has achieved its target to a certain extent. Future guidelines for the up-gradation of electricity pricing reform in the residential sector are thus proposed.</p> 2021-07-31T00:00:00+00:00 Copyright (c) 2021 Sania Malik The Impact of Stock Price Crash Risk on the Cost of Capital: Empirical Study from China 2021-06-03T11:42:26+00:00 Muhammad Hamza Khan Muhammad Rizwan <p>This study analysed the effect of Sock Price Crash Risk (SPCR) on the cost of capital in Chinese listed firms in the Shenzhen stock exchange and the shanghai Stock Exchange. A sample of 290 firms based on the highest value of assets of each firm was used. The cost of capital consists of two factors; the cost of equity (COE) and the cost of debt (COD). The SPCR is measured by using two statistics, one is NCSKEW means the negative coefficient of skewness of the firm-specific weekly returns and the second is DUVOL that means Down to-Up Volatility used to measure the crash likelihood weekly return of firm-specific and used the Modified PEG ratio model of Eston approach to measuring the cost of equity. We used panel data to run the regression model analyses. SPCR was found to have a significantly positive relationship with the cost of equity and cost of debt. Also, the sample was divided into the State-Owned enterprise (SOEs) and Non-State-Owned enterprises (NSOEs) for comparison. The results show that the impact of SPCR on the COE and COD is stronger in SOEs than NSOEs. The regulators need to improve and strengthen the development of laws and regulations related to company information disclosure, to reduce the cost of capital of listed companies and improve the efficiency of financing the Chinese capital market. Companies need to work together to strengthen internal controls, create a good disclosure environment, and prevent the SPCR.</p> 2021-08-02T00:00:00+00:00 Copyright (c) 2021 Muhammad Hamza Khan, Muhammad Rizwan Assessing the Economic Impact of Tanneries’ Pollutants in Pakistan 2021-07-22T05:12:14+00:00 Abdul Rehman Nawaz Usama Anwar Shafique Ahmad <p>The leather industry, which is dubbed "Noxious" around the world, is an essential element of Kasur's industrial heritage. Hundreds of individuals in Kasur are directly or indirectly involved in the tanning of leather. The study's goal is to determine the effects of the environmental deterioration caused by tanneries on the economic lives of Kasur residents. Crop output declines due to the detrimental impacts of waste emissions on the surrounding soil, posing economic hazards. The three most polluted areas of Kasur have been identified, and data from the study area is collected through In-depth Interviews from 30 potential respondents in those areas. The convenience sampling technique has been applied, while the Mix-method approach (qualitative and quantitative) is used for the analysis. It is found that toxic pollutants of tanneries have profound adverse effects on the animals’ health such as cattle, poultry, fisheries, and adverse effects have been found on the production of meat and milk. The study suggests that the dangers of chemicals have a negative impact on those who live near chemical plants, both physically and economically. It proposes relocating industries away from residential areas.</p> 2021-08-04T00:00:00+00:00 Copyright (c) 2021 Abdul Rehman Nawaz, Usama Anwar, Shafique Ahmad Impact of Female Employment and Education on Child Health Care: A Case Study of Pakistan 2021-08-19T06:21:46+00:00 Mrs. Fouzia Durdana Qaiser Gillani Shahbaz Ahmad <p>The majority of the females become a part of the labour force to share the burden of families in Pakistan, and they contribute to the cost of their children's health care. This issue is highlighted in this study. This research focuses on females’ education and their involvement in the labour market and child health care in Pakistan. The activities that affect the health of children are analysed here by using time use survey data. The ordinary least squares regression technique is used to find an association of female related and household related variables and their child health care. The results reveal that female’s age and employment affect child health care negatively. However, female’s age square and child health care are positively related. Moreover, the mother’s educational grade dummies, assets of family and family size positively affect the child's health care. The study concludes that mature females provide better care to their children's health. However, employed females have less time to care for their child's health. Those females who belong to the joint family system can better look after their children due to their share of household responsibilities. In addition, educated and financially strong females provide better health care to their children. The study suggests that lower-cost care centers can make the high participation of females in the labour market. Moreover, mothers should give too much time to their children for better care. There is a severe need for improvement of the higher education of females so that they can better utilize their education in caring for their children.</p> 2021-08-31T00:00:00+00:00 Copyright (c) 2021 Mrs. Fouzia, Durdana Qaiser Gillani, Shahbaz Ahmad Impact of Women Education on Economic Growth: An Evidence from Pakistan 2021-06-24T17:56:41+00:00 Kiran Zahra Mudassar Yasin Baserat Sultana Zulqarnain Haider Raheela Khatoon <p>Education is the most fundamental right in the current situation, and it is an essential element of economic growth. No country can achieve economic development and goals without investing in education. Pakistan’s economic development is possible when education is equal for both men and women, but the government did not give importance to the sector as it deserved. This study investigated the determinants of female higher education in Pakistan and the impact of women's education on the economic growth of Pakistan. This study utilized time-series data from 1991 to 2019. The autoregressive distribution lag (ARDL) model is applied to estimate the impact. The result shows that in Pakistan, education expenditure has no positive effect on female education. In contrast, a positive relationship between female higher education and GDP growth exists, but this relation is not strong in the short run and long run.</p> 2021-08-31T00:00:00+00:00 Copyright (c) 2021 Kiran Zahra, Shahbaz Ahmad Critical Analysis of Rural Development Initiatives in Pakistan 2021-08-13T12:33:50+00:00 Muhammad Luqman Muhammad Umer Mehmood Muhammad Farooq Tariq Mehmood Muhammad Waqar Muhammad Yaseen Mukkram Ali Tahir <p>Rural development agencies have been regarded as important performers in terms of influencing development policies and programmes in rural areas of the world. The main focus of these programmes is to uplift the living standard of the masses in rural areas through sustained growth in the rural economy. To improve the livelihoods of rural communities, the government has adopted various rural development programmes, but the majority of them left very little effect on the ground. Many of these programmes had been inspired by the western paradigm. Categorically the efforts to uplift the livelihood of rural population in the North-Western Pakistan, have gained little success. According to recent reports, about one third population of mountainous region is still facing the problem of food insecurity, poverty and hunger which results in economic and political instability. Considering this, the government has launched many rural development programmes but almost all of them were terminated after gaining little success. Although the overall approach was institutional in nature but it failed to promote institutional aspect of rural development. Leading constraints to the rural developmental strategies include shortage of funds, dominated status of bureaucracy and lack of coordination among the implementing agency and local community. Besides state owned programmes for rural development many non-government organizations (NGOs) are also involved on the theme of development that is participatory for the decades. Among those initiatives Agha Khan Rural Support Programme (AKRSP) remained quite successful in northern areas of Pakistan. However, rural development through participatory approach is still far behind the predicted results and these organizations are facing problems in delivering welfare services to the rural poor as they are being blame that they are working on western agenda.</p> 2021-08-31T00:00:00+00:00 Copyright (c) 2021 Muhammad Luqman, Muhammad Umer Mehmood, Muhammad Farooq, Tariq Mehmood, Muhammad Waqar, Muhammad Yaseen, Mukkram Ali Tahir