The Impact of Industrial Policy on Export Performance in Pakistan
Author: Amir Azam

Since the independence the economy of Pakistan has seen some golden and worsens periods in its economic sector. Once titled Asia Tiger economy is now exporting less than Bangladesh that was once part of Pakistan. Through the current study its being tried to check the impact of Industrial Policy on Export Performance by taking Export Sophistication, Export Diversification and Export Competitiveness as indicators of Export Performance while import tariff, Export Subsidy, Industrial Expenditures, R&D Expenditures, Export Rebate and Export Processing Zones as Industrial Policy Instruments, using Error Correction Model from 1980-2017, with the speed of Adjustment in the long run that are caused by the structural changes and shocks affected the relationship. The study confirmed there is inverse relationship between import tariff and export performance because it discourage the foreign competition and domestic industrial sector enjoy the protection while Export Rebates and Export Subsidies have no significant impact on Export Performance. Other instrument of Industrial Policy such as Industrial Expenditure, Export Processing Zones and R&D expenditures shows positive relationship with Export Performance. Democracy type of government is good for industrialization but military regime showed more sophistication in export sector. By utilizing the instruments of Industrial Policy the Export Competitiveness can be improved that will boost the diversification both good and market level. Therefore it needs to have long term visionary Industrial Policy. Supervisor:- Dr. Karim Khan

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Keywords : Export Competitiveness, Export Diversification, Export Sophistication, Industrial Policy Instruments
Supervisor: Karim Khan

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