Informal Markets And Competition: An Analysis Of Barriers To Entry Of Legal Framework And Behavioral Attitude Towards Khokha Markets In Pakistan

Khokas (small vendor shops) are one of the key segments of Informal economy in Pakistan. Khokasprovide jobs to many people and facilitate consumers in doing various types of transactions. However, entry to barriers put a bar on such access, leading to inefficiencies. The elimination of barriers to entry is important for promoting competition in the market and enhancing welfare of people. Thus, it is important to know about the barriers to entry aspects of legal framework and behaviour of people towards khokas market. We aim to examine such barriers to entry in this study. We are of the view that some barriers to entry may be mitigated through policy measures but others barriers to entry may not be under the influence of policymakers. For example, this might be possible for policy makers to decrease the monetary and non-monetary cost of granting permissions to Khokas, but it might not be possible for them to ask relatives/friends of potential entrants to encourage and provide motivation to new entrants. We will examine, whether the barriers to entry aspects of legal framework are more dominant than the barriers to entry aspects of behaviour of people towards khokas. We will review the legal framework and collect primary data through focus group discussions (FGDs) and key informant’s interviews (KIIs) from the new entrants into the khokas’ markets in Punjab, KPK, Baluchistan and Islamabad. The focus of the FGDs and KIIs will be on the barriers to entry aspects of legal framework and attitude of people towards kohkas business.

CGP 01-037
Associate Professor
Economics, Quaid-i-Azam University, Islamabad
10 months
Rs. 3,704,997/-
Mr. Tehseen Qureshi