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Exports and Employment: A Case Study

Ashfaque H. Khan and Sabiha Khanum
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Ashfaque H. Khan: Pakistan Institute of Development Economics (PIDE) Quaid-i-Azam University Campus, Postal: P.O. Box. 1091,, Islamabad,, 44000,, Pakistan, http://www.pide.org.pk/
Sabiha Khanum: First Women Bank Limited, Postal: S.T.S.M. Foundation Building,, Cl -10/20/2, Beaumont Road, Civil lines,, Karachi -75530 Pakistan, http://www.fwbl.com.pk/

Economia Internazionale / International Economics, 1997, vol. 50, issue 2, 261-282

Abstract: This study examines the contribution of export expansion to employment creation. This issue has been analysed in the past by using a static input-output framework. We argue that the use of this method is, at best, a mechanical exercise and does not provide any theoretical foundation to measure the relationship between exports, output and employment. In particular, it does not say anything about the transmission mechanism as to how export expansion affects employment. We construct a four-equation simultaneous equation model in which exports, output and employment are determined simultaneously. We disaggregate the total exports into eleven categories and examine their contributions in employment generation.

Date: 1997
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