EconPapers    
Economics at your fingertips  
 

Explaining Pakistan’s Premature Deindustrialization

Nazia Nazeer () and Rajah Rasiah ()
Additional contact information
Nazia Nazeer: Department of Development Studies, University of Malaya, Malaysia

Lahore Journal of Economics, 2016, vol. 21, issue Special Edition, 351-368

Abstract: Recognizing that Pakistan faces premature deindustrialization, this paper seeks to explain the phenomenon. The country experienced wild swings in industrialization during the 1950s and 1960s. The period 2001–10 was characterized by fairly strong growth, followed by contractions in other periods. Pakistan’s manufacturing sector is dominated by clothing and textiles exports. Periods of manufacturing growth were associated with pro-manufacturing and import substitution policies, while slumps were characterized by deregulation and a relatively high exchange rate. The evidence shows that the relative stagnation of manufacturing (regardless of the policies implemented) can be explained by the lack of a dynamic industrial policy targeting technological catch-up and leapfrogging. Moreover, where rents were distributed in the form of incentives, there was no emphasis on monitoring and appraisal.

Keywords: Deindustrialization; industrial policy; economic growth; Pakistan. (search for similar items in EconPapers)
JEL-codes: L52 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://lahoreschoolofeconomics.edu.pk/EconomicsJou ... r%20and%20Rasiah.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:lje:journl:v:21:y:2016:i:sp:p:351-368

Access Statistics for this article

More articles in Lahore Journal of Economics from Department of Economics, The Lahore School of Economics Contact information at EDIRC.
Series data maintained by Shahid Salahuddin ().

 
Page updated 2017-06-29
Handle: RePEc:lje:journl:v:21:y:2016:i:sp:p:351-368