THE EXPORT COMPETITIVENESS OF PAKISTAN: A Constant Market Share Analysis, 1973-1995

Mohammad Akbar

Pakistan Journal of Applied Economics, 2000, vol. 16, 1-23

Abstract: Export earnings are of immense importance for a third world country like Pakistan, especially in the given grim economic situation and alarmingly low foreign exchange position. Since the early seventies, Pakistan has been incurring a terms of trade deficit of more than 3 percent a year. Pakistan's share in world trade has remained under 0.2 per cent throughout the period under consideration. Subsequent governments have placed increased emphasis on the expansion of export earnings. In the light of this growing awareness about the importance of exports in a developing country like Pakistan, an in-depth analysis of the export performance in a historical perspective is essential for any meaningful future planning in this regard. The purpose of this paper is to examine whether and to what extent, low share of Pakistan's export in world trade reflects the lack of its international competitiveness. This is achieved by using Constant Market Share Analysis.

Date: 2000
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