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

Azam Chaudhry, Marjan Nasir and Maryiam Haroon

Lahore Journal of Economics, 2012, vol. 17, issue Special Edition, 191-212

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.

Keywords: Firm; export clusters; entry; Pakistan. (search for similar items in EconPapers)
JEL-codes: D22 F14 (search for similar items in EconPapers)
Date: 2012
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Handle: RePEc:lje:journl:v:17:y:2012:i:sp:p:191-212