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An Analysis of Technology Adoption by Export-oriented Manufacturers in Pakistan

Author

Listed:
  • Tariq Mahmood

    (Pakistan Institute of Development Economics, Islamabad)

  • Musleh Ud Din

    (Pakistan Institute of Development Economics, Islamabad)

  • Ejaz Ghani

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

This paper analyses the issue of technology adoption by export-oriented enterprises based on survey data. Using the Rank Model of technology adoption, the paper explores the role of several firm level characteristics that can influence firm’s decision to adopt new technology. The results show that younger and bigger firms have a higher probability of technology adoption. Firms that have obtained certifications to product and process standards demonstrate a higher likelihood of technology adoption. Domestically -owned firms are found to have a higher probability of technology adoption as compared with foreign-owned firms. The empirical findings underscore the need for policy options to encourage exp ort-oriented enterprises to adopt new technology including, for example, fiscal incentives to encourage research and development activities, and up-gradation of physical infrastructure for product testing to facilitate certifications.

Suggested Citation

  • Tariq Mahmood & Musleh Ud Din & Ejaz Ghani, 2009. "An Analysis of Technology Adoption by Export-oriented Manufacturers in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(4), pages 939-948.
  • Handle: RePEc:pid:journl:v:48:y:2009:i:4:p:939-948
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    File URL: http://www.pide.org.pk/pdf/PDR/2009/Volume4/939-948.pdf
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    Citations

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    Cited by:

    1. Ahmed, Gulzar & Arshad Khan, Muhammad & Afzal, Muhammad, 2015. "Trade Liberalization and Industrial Productivity: Evidence from Pakistan," MPRA Paper 70744, University Library of Munich, Germany, revised 15 Mar 2016.
    2. Ejaz Ghani & Musleh ud Din & Afia Malik, 2017. "An Assessment of Pakistan's Export Performance and the Way Forward," Working Papers id:12173, eSocialSciences.
    3. Saba Firdousi, 2016. "Technology in the Sialkot Gloves Manufacturing Sector," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 253-272, September.
    4. Afia Malik & Ejaz Ghani & Musleh ud Din, 2017. "An Assessment of Pakistan’s Export Performance and the Way Forward," PIDE-Working Papers 2017:153, Pakistan Institute of Development Economics.

    More about this item

    Keywords

    Manufacturing Industries; Probit Model; Technology Adoption;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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