Abstract

An increase in productivity has been associated with better export performance by increasing the efficiency of the factors of production. Further, productivity leads to a reduction in production costs and an increase in comparative advantage in the international market. In this study, the Autoregressive distributed lag (ARDL) bound test is used to investigate the nexus between productivity and export performance of agricultural and manufacturing sectors of Pakistan. The study uses secondary data from 1990 to 2016 to estimate the total factor productivity (TFP) and then uses it as a proxy of productivity. Our results show that TFP and gross domestic product (GDP) have a significant and positive impact on the export performance of Pakistan. Foreign direct investment (FDI), real exchange rate and cost to export are found to be negatively related to Pakistans export performance. In the long run, both the sectors (agricultural and manufacturing) need improvement in productivity in order to be competitive in intentional markets.

Authors

1-Asma Saeed
PhD Candidate, Department of Economics,Abdul Wali Khan University, Mardan, KP, Pakistan.

2-Zahoor Ul Haq
Professor,Department of Economics,Abdul Wali Khan University Mardan, KP, Pakistan.

3-Javed Iqbal
Assistant Professor, Department of Economics,Abdul Wali Khan University, Mardan, KP, Pakistan.

Keywords

Productivity; Total Factor Productivity; Export; Growth Accounting Framework

DOI Number

10.31703/ger.2018(III-II).10

Page Nos

94-105

Volume

III

Issue

II