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A Note on Competitiveness and Structural Transformation in Pakistan

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  • Jesus Felipe

    (Asian Development Bank)

Abstract

This paper examines Pakistan's economic prospects by analyzing the degree of structural transformation during the last 3 decades and by comparing it with that of other countries in Asia. This way, it intends to contribute to the literature on Pakistan's growth. The discussion is important in order to raise awareness among policy makers so that sound policies for economic transformation are implemented. Pakistan's degree of structural transformation has been lower and slower than that of other countries in Asia. Accelerating the rate of structural transformation should be a key objective of Pakistan's policy makers. Sector specific reforms that foster competition should be viewed from the point of view of transforming the economy. This requires a dose of good policy, as the market alone cannot accomplish this. The paper argues that a well-developed plan in the form of industrial policy, understood as strategic collaboration between public and private sectors, is an important tool.

Suggested Citation

  • Jesus Felipe, 2007. "A Note on Competitiveness and Structural Transformation in Pakistan," ADB Economics Working Paper Series 110, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0110
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    References listed on IDEAS

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    1. Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
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    Keywords

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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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