Thank you for the feedback, dear Yousuf. If you read the article carefully, you will see this is specific & data driven. A short thread to explain. πππ
https://twitter.com/YousufNazar/status/1523253234881613826
Figure 2 in the article is built from a careful analysis combining micro-level *data* from all listed firms in Pakistan, & effective rates of protection (calculated based on FBR data on import duties and the latest input output *data* from IFPRI. It conveys the key message. π
Figure 3 comes from a careful econometric analysis we did w/@StefaniaLovo in which we recover markups from the data, and estimated systematic effects of changes in #import duties on these markups. It conveys the key message. π
The bicycle example is also *data* driven (and careful). It relies on data on value added/output and employment costs/value added by sector from @PBSofficialpak in its latest CMI. It conveys the key message. π
#Exchange rates matter for #exports, yes, but they don't change anything here. A more depreciated currency boosts exports, but regardless of how depreciated the currency is, import taxes act as export taxes. π
For a specific & data driven analysis on ER & exports, see. openknowledge.worldbank.org/handle/10986/3β¦
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