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