Textile Industry Issues
The Lahore Journal of Economics 17 : SE (September 2012): pp. 103–134
Export Barriers in Pakistan: Results of a Firm-Level Survey Rashid Amjad*, Ejaz Ghani**, Musleh ud Din*** and Tariq Mahmood****
Abstract This study attempts to evaluate exporters’ perceptions of the problems they face in exploiting their full competitive potential in the international market. Using firm-level survey data, we find that a shortage of skilled labor, the energy crisis, institutional rigidities, market imperfections, and weaknesses in physical infrastructure are the key impediments to achieving export competitiveness. Policies geared toward improving the quality of skilled labor, resolving the energy crisis, and reducing transaction costs by improving the institutional and physical infrastructure are key to expanding Pakistan’s exports on a sustained basis. Keywords: Pakistan, export competitiveness, exporting procedures, certifications JEL classification: F13. 1. Introduction At a time when many developing countries are rapidly expanding their exports, Pakistan continues to struggle to accelerate the export of manufactured goods. It is generally believed that the country’s exports are not competitive in international markets and that Pakistan is, therefore, unable to expand its market share. In particular, firms often complain of the lack of an investment-conducive climate, which impedes business expansion and exports. Against this backdrop, the objective of this study is to carry out a systematic investigation of firms’ perceptions of the barriers to exports in various productive sectors of the economy, as well as to suggest possible remedies. This analysis is based on a survey of exporters based in Lahore, complemented by a study of the determinants of export performance at the macro-level.
*
Vice-Chancellor, Pakistan Institute of Development Economics, Islamabad. Chief of Research, Pakistan Institute of Development Economics, Islamabad. Joint Director, Pakistan Institute
Export Barriers in Pakistan: Results of a Firm-Level Survey Rashid Amjad*, Ejaz Ghani**, Musleh ud Din*** and Tariq Mahmood****
Abstract This study attempts to evaluate exporters’ perceptions of the problems they face in exploiting their full competitive potential in the international market. Using firm-level survey data, we find that a shortage of skilled labor, the energy crisis, institutional rigidities, market imperfections, and weaknesses in physical infrastructure are the key impediments to achieving export competitiveness. Policies geared toward improving the quality of skilled labor, resolving the energy crisis, and reducing transaction costs by improving the institutional and physical infrastructure are key to expanding Pakistan’s exports on a sustained basis. Keywords: Pakistan, export competitiveness, exporting procedures, certifications JEL classification: F13. 1. Introduction At a time when many developing countries are rapidly expanding their exports, Pakistan continues to struggle to accelerate the export of manufactured goods. It is generally believed that the country’s exports are not competitive in international markets and that Pakistan is, therefore, unable to expand its market share. In particular, firms often complain of the lack of an investment-conducive climate, which impedes business expansion and exports. Against this backdrop, the objective of this study is to carry out a systematic investigation of firms’ perceptions of the barriers to exports in various productive sectors of the economy, as well as to suggest possible remedies. This analysis is based on a survey of exporters based in Lahore, complemented by a study of the determinants of export performance at the macro-level.
*
Vice-Chancellor, Pakistan Institute of Development Economics, Islamabad. Chief of Research, Pakistan Institute of Development Economics, Islamabad. Joint Director, Pakistan Institute