Competitiveness, Diversification and Pakistan's Export Performance of Leather and Leather Products; A Constant Market Share Analysis

Abstract

The present study focuses on measuring the competitiveness, diversifications and export performance of Pakistan`s selected leather and leather products in the global economy from 2003-2014. The study employs Constant Market Share Analysis to measure the competitiveness and suggests some policy measures that might be helpful to enhance the export volume which leads to a considerable increase in the foreign exchange that is indispensible for achieving desired economy. The findings of the study of the product group (4202) illustrate that average total effect, structural effect, specific competitive effect were positive, whereas average competitive effect, commodity effect, general competitive effect and market effect were negative from 2003-08. Furthermore, the results indicate that the average total effect, structural effect, commodity effect, competitive effect and specific competitive effect were positive, while market effect and general competitive effect were negative from 2009-14. Moreover, the analysis of the product group (4203) highlights that average total effect, structural effect, competitive effect, specific competitive effect, commodity effect were positive, whereas average general competitive effect and market effect were negative from 2003-08. In addition, the findings  indicate that the average total effect, structural effect, competitive effect and specific competitive effect were positive, while average commodity effect,  market effect,  general competitive effect were negative from 2009-14. The findings of the analysis illustrate that Pakistan has the potential to enhance its exports to the world, but some diversifications are required to be competitive in the world market.