Pakistan Institute of Development Economics



The Export Growth of Pakistan: A Decomposition Analysis

The Constant Market Share Analysis of export growth is used here to capture the world trade effect, the commodity composition effect, the market distribution effect and the competitiveness effect for the periods: 1984-85–1988-89 and 1988-89–1992-93. The results show that Pakistan has maintained her export share in the world market. The market distribution and competitiveness of Pakistani exports have improved significantly between the two periods under study. However, the concentration of Pakistani exports into traditional commodities, whose world demand remained sluggish, has offset the positive contribution of effective market distribution and improved competitive strengths to a large extent. A restructuring of exports (from traditional to non-traditional), an increase in the variety of exports, search for new fast growing markets and an improvement in the economic and political environment are suggested to enhance the export growth of Pakistan in future.

Azhar Mahmood, Naeem Akhtar