IDEAS home Printed from https://ideas.repec.org/p/sbp/wpaper/20.html

Financial Development and Textile Sector Competitiveness: A Case Study of Pakistan

Author

Listed:
  • Muhammad Nadeem Hanif

    (State Bank of Pakistan)

  • Sabina Khurram Jafri

    (State Bank of Pakistan)

Abstract

This paper makes an attempt to explore the relationship between the financial development and international trade competitiveness in the case of Pakistan – an issue that has not been investigated earlier. We construct Balassa’s Revealed Comparative Advantage (RCA) index for textile sector of Pakistan. Using ratio of credit extended to the textile sector to the total non-government credit of the banking system (TCS) as proxy for external finance, we estimate long run relationship and ECM, between RCA index and TCS while controlling for other determinants of the international trade competitiveness of textile sector of Pakistan. In line with the findings of Beck (2002) and Fanelli and Medhora (2002), our results suggest that dependence on external finance has a positive impact on the country’s textile sector competitiveness both in the short and the long run even when we control for traditional determinants of competitiveness. Length: 23 pages

Suggested Citation

  • Muhammad Nadeem Hanif & Sabina Khurram Jafri, 2008. "Financial Development and Textile Sector Competitiveness: A Case Study of Pakistan," SBP Working Paper Series 20, State Bank of Pakistan, Research Department.
    • Handle: RePEc:sbp:wpaper:20
    as

    Download full text from publisher

    File URL: http://www.sbp.org.pk/repec/sbp/wpaper/wp20.pdf
    File Function: First version, 2008
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hasan Shahzad & Umar Shahzad & Imran Ahmad, 2024. "The Prospects of Comparative Advantage in Pakistan’s Exports of Pharmaceutical Products," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 857-863.
    2. repec:lje:journl:v:20:y:2015:i:1:p:157-168 is not listed on IDEAS
    3. Shah Mehmood WAGAN, 2015. "Export boost of textile industry of Pakistan by availing EU’s GSP Plus," Journal of Economics Library, KSP Journals, vol. 2(1), pages 18-27, March.
    4. Cvetković Milica & Petrović-Ranđelović Marija, 2017. "The Analysis of Agricultural Products Export Competitiveness of the Republic of Serbia Based on the RCA Index," Economic Themes, Sciendo, vol. 55(3), pages 399-420, September.
    5. Wagan, Shah Mehmood, 2015. "Export boost of Textile Industry of Pakistan by availing EU’s GSP Plus," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(1), pages 18-27.
    6. Akmal, Nadeem & Akhtar, Waqar & Shah, Hassnain & Niazi, Muhammad Azam & Saleem, Tariq, 2014. "The Structure and Competitiveness of Pakistan’s Basmati Rice Exports," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 4(04), pages 1-9, April.
    7. repec:lje:journl:v:19:y:2014:i:sp:p:327-348 is not listed on IDEAS
    8. Junaid Ahmed, 2025. "Pakistan`s Dismal Export Performance: A Survey of Empirical Literature," PIDE-Working Papers 2025:10, Pakistan Institute of Development Economics.
    9. Khurram Shahzad, 2015. "An RCA Analysis of Textiles and Clothing in Pakistan, India, and Bangladesh," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(1), pages 157-168, Jan-June.
    10. Sadaf Shahab & Muhammad Tariq Mahmood, 2013. "Comparative Advantage of Leather Industry in Pakistan with Selected Asian Economies," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 133-139.
    11. Hanif, M.N. & Husain, F. & Jafri, S., 2008. "Financial Sector Reforms and International Trade Competitiveness: A Case Study of Pakistan," MPRA Paper 36730, University Library of Munich, Germany, revised 31 Jan 2012.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F49 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Other
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sbp:wpaper:20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Saleh (email available below). General contact details of provider: https://edirc.repec.org/data/sbpgvpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.