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The Effect of Trade Liberalization on Firm Entry and Exit in Punjab, Pakistan

Author

Listed:
  • Marjan Nasir

    (Teaching fellow, Lahore School of Economics, Lahore, Pakistan.)

Abstract

This study focuses on the impact of trade liberalization on firm entry and exit in Punjab’s export manufacturing sector over the decade 2001–10. As far as the province’s export industries are concerned, real exchange rate depreciation attracts new firms but also leads weaker firms to exit. A reduction in local or international tariffs, however, has no significant impact on firm entry or exit.

Suggested Citation

  • Marjan Nasir, 2014. "The Effect of Trade Liberalization on Firm Entry and Exit in Punjab, Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(1), pages 67-89, Jan-June.
    • Handle: RePEc:lje:journl:v:19:y:2014:i:1:p:67-89
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    trade liberalization; exchange rates; firm entry; Pakistan.;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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