Immiserizing Growth Pattern of Pakistan’s Export 2014-2018. Analysis Based on Comparative Advantage and Unit Value Structure
Immiserizing Growth Pattern of Pakistan’s Export 2014-2018. Analysis Based on Comparative Advantage and Unit Value Structure

Summary/Abstract: This study aims to specify the changing pattern of comparative advantage of Pakistani exports at the sector and product levels. Export unit value is also used, which is an additional and important factor for this research work. Furthermore, the analysis would check the presence of immiserizing” export growth. The paper estimates Balassa’s RCA Index and compares it with aggregate export value and growth in value and unit value growth in Pakistan over the period 2014-2018. Estimates are presented at the sectoral level as well as the HS six-digit product level. The study finds that Pakistan has been experiencing “immiserizing” export growth. Unit value growth is not associated with growth in export value or RCA growth. Even in sectors where RCAs are rising, the country is exporting products mainly with low or negative unit value growth. The findings suggested that Pakistan’s trade strategy should focus on vertical export diversification - i.e., moving up the value chain in sectors and markets in which we already have significant presence.

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