This study analyzes the effect of smuggling on the economic status of households in District Loralai. The data of 400 households were collected by using a simple random sampling technique from the Loralai district. The ordinary least square method was applied to estimate the results. Both rural and urban households were sampled. The economic status of the households was measured with household monthly income, household monthly expenditures, and household value of physical assets. The core independent variable used in the study was the participation of respondents in smuggling and price differences. Results show that smuggling boosts the economic status of households but harms the country's economic growth.
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