Internationally Linked Firms and Productivity in Pakistan: A Look at the Top End of the Distribution

Stefania Lovo and Gonzalo Varela

No 7, Working Papers from SITES

Abstract:

This paper examines productivity drivers for Pakistani publicly listed firms over 2012–17, with a focus on policy and outcome measures of integration in upstream sectors. We find that increased import duties on intermediates, and reduced FDI in upstream services, are associated with reduction in productivities downstream. Gains from lower input tariffs accrue to firms that cannot secure duty exemptions — domestic-oriented firms and smaller exporters. Gains from upstream services FDI accrue mostly to firms that are further from the productivity frontier. Our results suggest that productivity growth in Pakistan would benefit from increased exposure of upstream sectors to global markets.

Keywords: Total Factor Productivity; Exporters; Tariffs; Foreign Direct Investment; Intermediate Inputs; Duty Exemptions (search for similar items in EconPapers)
JEL-codes: D22 D24 F14 F15 F23 F61 (search for similar items in EconPapers)
Date: 2022-04
New Economics Papers: this item is included in nep-eff
Note: SITES Working Papers 7
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Internationally Linked Firms and Productivity in Pakistan: A Look at the Top End of the Distribution (2022)
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