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The impact of Industrial Policy on Export Diversification: Some Empirical Evidences from Pakistan
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The impact of Industrial Policy on Export Diversification: Some Empirical Evidences from Pakistan
Thúy Hương
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The current study made an attempt to check the relationship between Industrial Policy and export diversification using ARDL approach because of different integration nature of variables under consideration from 1980-2018. | The impact of Industrial Policy on Export Diversification Some Empirical Evidences from Pakistan Technium Social Sciences Journal Vol. 5 84-96 March 2020 ISSN 2668-7798 www.techniumscience.com The impact of Industrial Policy on Export Diversification Some Empirical Evidences from Pakistan Amir Azam Pakistan Institute of Development Economics amirazam_17@pide.edu.pk Abstract. Export sector is considered as the backbone of any economy. The economy which is efficient and competitive in global market enjoys better export performance otherwise become dependence on foreign goods market. Pakistan being a developing economy faces worse export performance as compare to its past competitors and currently economy faces huge current account deficit. The current study made an attempt to check the relationship between Industrial Policy and export diversification using ARDL approach because of different integration nature of variables under consideration from 1980-2018. The findings of the study suggests that there is strong relationship between industrial Policy instruments and export diversification both in short run and long run and by enhancing strong and visionary Industrial Policies and less relying on imports the economy can enjoy sufficient growth and diversify its export structure. Keywords. Industrial Policy Export Diversification Export Diversification Index Herfindal Index Market Penetration Introduction Going back to 1960 s and 70 s the economy of Pakistan was considered as one of the fastest growing economy not only in South Asia but also in global market Siddiqui 2018 and Khan 1998 elaborated that by viewing the history of export performance of Pakistan with other developing economies the individual performance of Pakistan s export was higher than the overall performance of Philippines Turkey Korea and Indonesia in 1960 s but soon after we unable to diversify our industrial sector both at market and goods level that bring us as lower as even we can t export half
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