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The Birth of Exporters: Entry and Scale of Firms in Punjab’s Export Sectors

Author

Listed:
  • Azam Chaudhry

    (Associate Professor and Dean, Department of Economics, Lahore School of Economics.)

  • Marjan Nasir

    (Department of Economics, Lahore School of Economics.)

  • Maryiam Haroon

    (Department of Economics, Lahore School of Economics.)

Abstract

In this paper we analyze which factors affect new firm entry and the scale of new firms in the export clusters of Punjab. Our analysis looks at local conditions (such as the degree of concentration in an industry, the employment of firms of that industry already located in a region, the employment of firms of all industries located in that region) and international conditions (such as the real exchange rates of Pakistan’s major trading partners and tariff rates). The results show that more export sector firms will enter highly concentrated industries and that firm entry increases significantly as a result of a depreciation in the trade-weighted real exchange rate, while the impact of changes in trade partner tariffs is not significant.

Suggested Citation

  • Azam Chaudhry & Marjan Nasir & Maryiam Haroon, 2012. "The Birth of Exporters: Entry and Scale of Firms in Punjab’s Export Sectors," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(Special E), pages 191-212, September.
    • Handle: RePEc:lje:journl:v:17:y:2012:i:sp:p:191-212
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    References listed on IDEAS

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    Cited by:

    1. Haroon, Maryiam & Chaudhry, Azam, 2014. "Where do new firms locate? The effects of agglomeration on the formation and scale of operations of new firms in Punjab," Economics Discussion Papers 2014-21, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    Keywords

    Firm; export clusters; entry; Pakistan.;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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