...Changing revealed comparative advantage: a case study of footwear industry of Pakistan by Naseem Akhtar, Nadia Zakir, Ejaz Ghani Comments • 1 • 2 • 3 • 4 • 5 • 6 • 7 • 8 • 9 • 10 • 11 • Next The study looks at the issues facing the footwear industry regarding its competitiveness in the global perspective and its potential for growth. The methodology of Revealed Comparative Advantage (RCA) is used to analyse the comparative advantage at 2-digit and 4-digit levels of industrial classification. The paper highlights the problems faced by the footwear industry and identifies the role of entrepreneurship for the progress of the industry. The analysis shows that in recent years, specifically the period from 2003-06, the footwear industry has moved from disadvantage (as compared with China and India) position to comparative advantage. The study indicates that there is potential for higher growth of the industry and it can become a source of export earnings. The study suggests that in the rapidly changing global economic environment and in the face of increasing cost of doing business in Pakistan, there is a need to strengthen the competitiveness of the footwear industry in Pakistan. JEL classification: L67 Keywords: Revealed Comparative Advantage, Footwear, Pakistan. 1. INTRODUCTION The global export patterns are changing fast as a result of reduction in trade barriers and technological advancements that have led to gains in productivity and change in...
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...Abstract: Pakistan has important strategic endowments and development potential. The country is located at the crossroads of South Asia, Central Asia, China and the Middle East and is thus at the fulcrum of a regional market with a vast population, large and diverse resources, and untapped potential for trade. The increasing proportion of Pakistan’s working-age population provides the country with a potential demographic dividend but also with the critical challenge to provide adequate services and increase employment Economical view: Pakistan faces significant economic, governance and security challenges to achieve durable development outcomes. The persistence of conflict in the border areas and security challenges throughout the country is a reality that affects all aspects of life in Pakistan and impedes development. A range of governance and business environment indicators suggest that deep improvements in governance are needed to unleash Pakistan's growth potential Pakistan also faces significant economic challenges. The sharp rise in international oil and food prices, combined with recurring natural disasters like the 2010 and 2011 floods had a devastating impact on the economy. As Pakistan recovered from the 2008 global crisis, its gross domestic product (GDP) grew 3.8 percent in Fiscal Year 2009/2010 (FY09/10). The 2010 floods, with an estimated damage of over $10 billion, caused growth to slow down to 2.4 percent in FY10/11. The Pakistan economy grew by an estimated...
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...BUSINESS ETHICS REPORT ON ETHICAL PRACTISES OF PAKISTAN GEMS AND JEWELRY DEVELOPMENT COMPANY ACKNOWLEDGEMENT First of all we would like to thank Allah Almighty for giving us the strength, Knowledge and resources to make our work easy and possible. Without His blessings we would not have come this far. Then we the student of Bahria University would like to thank our course instructor Sir Shaikh Muhammad Ali who taught us Business Ethics and for giving us an opportunity to make a report on Pakistan Gems and Jewelry Development Company. We would like to thank Mr. Khalid Aziz the General Manager of the company who take out some time and briefed us on our queries, without whom this report would not be possible. Executive summary This report contains information about one of the jewelry manufacturing company of Pakistan named Pakistan Gems and Jewelry Development Company. The report consists on the following: company’s history, vision and mission statement, core values, its strategies. Through our survey while preparing our report and gathering information on PGJDC we came to know about certain things which gave us an upper hand to make our report more interesting and they are the compulsion and benefits being offered by PGJDC to its employees. In the last we compiled the training program of PGJDC which is definitely the core ingredient of this report. At the very end we have provided the URL links from which we take some information while preparing our report. ...
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...publication of the Sustainable Development Policy Institute (SDPI). The opinions expressed in the papers are solely those of the authors, and publishing them does not in any way constitute an endorsement of the opinion by the SDPI. Sustainable Development Policy Institute is an independent, non-profit research institute on sustainable development. © 2009 by the Sustainable Development Policy Institute First Edition November 2009 Mailing Address: PO Box 2342, Islamabad, Pakistan. Telephone ++ (92-51) 278134, 278136, 277146, 270674-76 Fax ++(92-51) 278135, URL: www.sdpi.org Table of Contents Abstract .................................................................................................................1 1. EU-Pakistan Trade in Textiles and Clothing: A Love – Hate Relationship? ...........1 2. Character matters: structural features of T&C trade..............................................1 3. Anatomy of textiles and clothing trade between Pakistan and the EU ...................4 4. Future scenarios for a contested relationship .......................................................6 5. Measures supporting a healthy trade partnership ................................................ 7 References ......................................................................................................................9 Annex...
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...the trade performance from the 1980s onwards to see the progress made towards the integration of the Pakistani economy into the world economy. It will look into the opportunities that Pakistan is likely to gain in a more globalised world, with special focus on the textile and clothing sector and the potential growth in this sector after the abolition of the Multi Fibre Arrangement (MFA) in 2005. New challenges that may emerge in a more open trading environment will also be discussed. 1. Introduction Globalisation broadly defined as the free movement of goods, services, people and information across national boundaries has become a widely debated topic in recent years. Developing countries embrace Globalisation for a variety of reasons. Firstly, foreign investment provides more jobs, new production technologies, infrastructure improvements and a source of capital for local entrepreneurs. Domestic businesses gain access to both cheaper inputs and much larger markets for their products. The removal of trade barriers expands the range of choices available to consumers and places downward pressure on prices thereby raising the real value of workers’ earnings. Globalisation and liberalisation present many new opportunities for developing countries such as Pakistan, viz. higher growth through export expansion and improvements in their balance of payments situation. A World Bank study (Dollar and Kraay 2001)...
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...| Hussain Industries: Hussain industries is known to be one of the largest textile manufacturers in Pakistan. It is located in the hub of textile industries in Pakistan, the city of Multan, which is also famously known as the largest cotton growing city. This company is a partnership and is currently equally being shared between two parties. Hussain industries has been manufacturing articles with intense colour tones which include the following: Articles with intense color tones, including dyed yarns, printed kitchen towels, napkins, tea towels, table cloths, terry towels, surgical towels, industrial towels (with and without logo, tile motifs, check variants, micro checks, graduated checks and linear embroidery), herringbone, mono checks, dishcloths, shower curtains, hospital bed sheets, thermal blankets, bedspreads, draw sheets, upholstery, handkerchiefs, aprons, place mats, pot holders, gloves, and beach throws. These are manufactured using dobby looms, jacquard looms, and shuttle looms, which allow for state of the art floral motifs, subtle shadows, and colour gradients. KARACHI: The textile sector enjoys a pivotal position in the exports of Pakistan. The contribution of this industry to total gross domestic product (GDP) is 8.5%. It provides employment to about 15 million people, 30% of the country’s workforce of about 49 million. The annual volume of total world textile trade is $18 trillion which is growing at 2.5%. But Pakistan’s share is less than one per cent...
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...be able to turn the existing trade deficit in its favour. Through improvement in communications, Pakistan can thus effectively integrate its domestic market as well as explore landlocked neighbouring markets through exports. Completion of CPEC is likely to improve Pakistan’s economic, commercial, and geostrategic environment. As the proposed Chinese investment more than doubles all foreign direct investment in Pakistan since 2008, it will attract international investors in Pakistan. This will help to improve the perceived external image of the country, an image that is not always in line with current situations and tends to be more negative than merited by actual conditions and one that causes a psychological obstacle to the flows of foreign...
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...Table of Contents Introduction 2 Factors affecting exchange rate 4 Is an appreciation good or bad? 8 Reasons for Currency Appreciation in Pakistan 8 Impact of Pak rupee appreciation on Economy of Pakistan 9 Impact on Sectors 13 Conclusion/ Recommendations 14 References 15 Introduction Exchange rate can be defined as rate at which one currency may be converted into another. The exchange rate is used when simply converting one currency to another (such as for the purposes of travel to another country), or for engaging in speculation or trading in the foreign exchange market. There are a wide variety of factors which influence the exchange rate, such as interest rates,inflation, and the state of politics and the economy in each country also called rate of exchange or foreign exchange rate or currency exchange rate. An increase in the value of one currency in terms of another. Currencies appreciate against each other for various reasons, including capital inflows and the state of a country's current account. Typically a forex trader trades a currency pair in the hopes of currency appreciation of the base currency against the counter currency. The dollar has depreciated significantly against the rupee. As this has been a highly noticeable and largely unexpected event, it has raised a plethora of questions in the minds of citizens, and conspiracy theories have done the rounds. Yet dollar depreciation against the rupee is not as mysterious...
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...the textile complex to determine whether these conform with both trade specialization and industry evolution theories. A model of evolutionary change in intra-complex specialization is defined and evaluated. Design/methodology/approach – A revealed comparative advantage index is employed to evaluate international competitiveness for 30 nations over a 42-year period. With repeated measures, ANOVA is used, to determine the significance of the observed patterns across five income-defined groups of nations. Findings – Long-term patterns of specialization broadly reflect expectations of factor proportions theory and industry evolution models. Product and income group characteristics combine to influence comparative advantage. Higher income nations generally remain stronger in more capital-intensive sectors, while lower income countries have emerged to dominate labor-intensive sectors. However, inclusion of a more complex array of variables is necessary to obtain a fuller understanding of international competitiveness. Practical implications – Established theory remains a useful but limited guide to understanding the dynamics of international competitiveness in the context of the changing business environment. Improved understanding of patterns of change can assist strategic planning....
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...be natural or synthetic using products of the chemical industry. The textile and clothing (T&C) industries provide the single source of economic growth in Bangladesh's rapidly developing economy. Exports of textiles and garments are the principal source of foreign exchange earnings. Exports of textiles, clothing, and ready-made garments (RMG) became 77% of Bangladesh’s total merchandise exports. By 2013, about 4 million people, mostly women, worked in Bangladesh's $19 billion-a-year industry, export-oriented ready-made garment (RMG) industry. Bangladesh is second only to China, the world's second-largest apparel exporter of western brands. Sixty percent of the export contracts of western brands are with European buyers and about forty percent with American buyers. Only 5% of textile factories are owned by foreign investors, with most of the production being controlled by local investors. Textiles have been an extremely important part of Bangladesh's economy for a very long time for a number of reasons. Bangladesh is the world's second biggest exporter of clothing after China. Readymade garments make up 80 percent of the country's $24 billion in annual exports and 15 percent share of GDP. Consultancy firm McKinsey and Company has said Bangladesh could double its garments exports in the next 10 years. In Asia, Bangladesh is the one of the biggest largest exporter of textile products providing employment to a great share percent of the work force in the country. Currently, the...
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...The Pakistan Credit Rating Agency Limited CEMENT – AN OVERVIEW FEBRUARY 2014 CEMENT The Pakistan Credit Rating Agency Limited CEMENT – AN OVERVIEW SECTOR STUDY STUDY CONTENTS Summary Sector Study: Global Cement Industry Pakistan Industry Business Risk Financial Risk Outlook PAGE 1 2 2 4 6 7 February 2014 www.pacra.com SECTOR STUDY The Pakistan Credit Rating Agency Limited CEMENT – AN OVERVIEW (FEBRUARY 2014) SECTOR DYNAMICS Business Risk Outlook Medium Stable to Positive OVERVIEW Pakistan’s cement industry has an oligopolistic structure – top five players (out of a total of 18) controls above 55% share. Geographically production facilities are concentrated in north (83%) of the country, while south has around 17%. During the last decade, the Pakistani cement industry has expanded its production capacity significantly; while gradually making inroads into the exports markets. The cement production capacity of Pakistan stood 44.8mln tons in FY13. Demand dynamics, playing key role in cement manufacturing, kept capacity utilization at ~75%, a behavior observed in past few years. Currently, Pakistan is ranked among the world's top 10 cement exporting countries. Pakistan Cement - Production and Capacity Utilization 50 45 40 35 Mln Tons HIGHLIGHTS FY13 Total Companies No. of listed Companies Share of listed Companies (based on capacity) Cement Production Capacity Utilization Market Capitalization Revenue* Net Income* Cement Sector Loans Share...
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...Recommendation Potters Industries LLC operates within the glass and glass manufacturing industry and produces engineered glass materials and technologies that are operated in highway safety, polymer additive, metal finishing and conductive particle markets (Exhibit 1 - 4). Potters Industries worldwide manufacturing and distribution network supplies its customers from 25 production points, 12 in the US, 2 of each in the United Kingdom, Australia, France, Japan and one each in Mexico, Brazil, Germany, Poland and Thailand. After conducting our research and analysis, we recommend that Potters Industries LLC expand its product lines into the South American country of Chile. Chile provided more arbitrage opportunities when compared with both Pakistan and Bulgaria. These opportunities will allow Potters to increase their exposure in the global market while increasing economies of scale. The small distances between the CAGE frameworks allow a smooth transition for Potters to create a regional base in Chile. Chile is an attractive market to take advantage in terms of economic growth, the government’s initiatives in moving to environmental sustainability and highway safety (Exhibit 5). Potters should take advantage of these opportunities by establishing presence in Chile through building a new operating plant in order to manufacture the good within the home market. Support Potters Industries has successfully expanded into an innovative leader in the glass bead manufacturing industry...
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...Marble Cluster Strategy February 2006 CCCA OTF Confidential Information — Copyright © 2004 by OTF Group, Inc Afg Marble DGE 01-06 1 Agenda Introduction to the OTF Group & the Afghanistan Competitiveness Project Step 1: Situation Analysis Step 2: Setting Goals Step 3: Understanding Marble Buyers’ & Importers’ Needs Step 4: Articulate Afghan Marble Positioning Step 5: Develop Action Guidelines Afg Marble DGE 04-09-05 2 OTF Confidential Information — Copyright © 2004 by OTF Group, Inc 1 Who is The OTF Group? The OTF Group (OTF = On The Frontier) is a private sector consulting firm that provides cutting-edge solutions to help firms and industries in emerging markets confront the challenge of developing successful business strategies. Confidential Uganda Trade Statistics Analysis Fixed Investment as a Percentage of GDP Uganda’s Fixed Investment as a Percentage of GDP vs. Selected Nations, 1981-1995 Japan Korea, Rep. Tanzania United States Kenya Sudan Uganda Zair e 50% Tension Moral Purpose OTF Client List (Partial) World Bank Group 40% Percent of Nation’s GDP 30% 20% Leadership 10% 0% 1 981 1983 1985 1987 1989 1991 1993 1995 '89 '91 '93 Receptivity Note: Statistics for years not represented on the chart were not reported Source: World Bank, World Development Indicators, 1997 XCG-ACM-Uga nda- 4-2 0-98 -JR 4 Copyr ight © 1 998 M onito r Comp any, In c. — Confid ential — CAM ...
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...NATIONAL MANUFACTURING COMPETITIVENESS COUNCIL Enhancing Competitiveness of Indian Manufacturing Industry: Assistance in Policy Making Final Report March, 2009 Enhancing Competitiveness of Indian Manufacturing Industry: Assistance in Policy Making DISCLAIMER CRISIL Risk and Infrastructure Solutions Limited (CRIS), a subsidiary of CRISIL Limited, has taken due care and caution in preparation of this Report. This Report is based on the information obtained by CRIS from sources, which it considers reliable. CRIS does not guarantee the accuracy, adequacy or completeness of any information contained in this Report and is not responsible for any errors or omissions, or for the results obtained from the use of such information. This Report should be used in its entirety only and shall not be reproduced in any form without prior permission from CRIS. CRIS and any of its directors, representatives or employees do not accept any liability for any direct, consequential or perceived loss arising from the use of this Report or its contents. CRIS specifically states that it has no financial liability whatsoever to the users of this Report. Final Report Enhancing Competitiveness of Indian Manufacturing Industry: Assistance in Policy Making TABLE OF CONTENTS LIST OF FIGURES...................................................................................................................................i LIST OF ABBREVIATIONS..........................................
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...2319–2828 Vol. 2, No.4, August 2013 FACTORS AFFECTING THE EXPORT PERFORMANCE OF TEXTILE INDUSTRY IN DEVELOPING COUNTRIES – A REVIEW OF LITERATURE Yoganandan.G & Jaganathan A.T Assistant Professor(s) in Management Studies K.S.R College of Arts and Science Tiruchengode, India Saravanan. R Director and Head, Department of Management Studies Sri Krishna College of Technology Coimbatore, India. SenthilKumar .V M.Phil Scholar in Management Studies K.S.R College of Arts and Science Tiruchengode, India. Abstract The present study aims at reviewing researches conducted in the area of determinants of and factors affecting the export performance of textile industry. The tools used by the various researchers and their findings are studied in order to establish the academic contributions made by these studies to the existing body of knowledge, new models developed and also to highlight method adopted or suggested by researchers for conducting researches in the area of export performance of manufacturing industries with special focus on textile sector in developing countries. The article analyzed researches carried out in China, India, Sri Lank, Bangladesh and Pakistan. These economies are the dominant textile exporters in the international trade. The review highlights that most of the studies have been carried out on establishing the relationship between GDP, exchange rate, labor, capital (FDI) and technology with export performance of textile industry. Most of the researchers...
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