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

Tariq Mahmood (), Musleh-ud Din () and Ejaz Ghani ()

The Pakistan Development Review, 2009, vol. 48, issue 4, 939–948

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.

Keywords: Manufacturing Industries; Probit Model; Technology Adoption (search for similar items in EconPapers)
JEL-codes: C25 L60 O14 (search for similar items in EconPapers)
Date: 2009
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