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Investigating the Nexus between Productivity and Export Performance of Pakistan

Author

Listed:
  • Asma Saeed

    (PhD Candidate, Department of Economics,Abdul Wali Khan University, Mardan, KP, Pakistan.)

  • Zahoor Ul Haq

    (Professor,Department of Economics,Abdul Wali Khan University Mardan, KP, Pakistan.)

  • Javed Iqbal

    (Assistant Professor, Department of Economics,Abdul Wali Khan University, Mardan, KP, Pakistan.)

Abstract

An increase in productivity has been associated with better export performance by increasing the efficiency of the factors of production. Further, productivity leads to a reduction in production costs and an increase in comparative advantage in the international market. In this study, the Autoregressive distributed lag (ARDL) bound test is used to investigate the nexus between productivity and export performance of agricultural and manufacturing sectors of Pakistan. The study uses secondary data from 1990 to 2016 to estimate the total factor productivity (TFP) and then uses it as a proxy of productivity. Our results show that TFP and gross domestic product (GDP) have a significant and positive impact on the export performance of Pakistan. Foreign direct investment (FDI), real exchange rate and cost to export are found to be negatively related to Pakistans export performance. In the long run, both the sectors (agricultural and manufacturing) need improvement in productivity in order to be competitive in intentional markets.

Suggested Citation

  • Asma Saeed & Zahoor Ul Haq & Javed Iqbal, 2018. "Investigating the Nexus between Productivity and Export Performance of Pakistan," Global Economics Review, Humanity Only, vol. 3(2), pages 94-104, December.
    • Handle: RePEc:aaw:journl:v:3:y:2018:i:2:p:94-104
    DOI: 10.31703/ger.2018(III-II).10
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    References listed on IDEAS

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    More about this item

    Keywords

    Productivity; Total Factor Productivity; Export; Growth Accounting Framework;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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