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Internationally Linked Firms and Productivity in Pakistan: A Look at the Top End of the Distribution

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  • Stefania Lovo
  • Gonzalo Varela

Abstract

This paper examines productivity drivers for Pakistani publicly listed firms from 2012 to 2017, with a focus on policy and outcome measures of integration in upstream sectors. We find that increased import duties on intermediates, and reduced FDI in upstream services, are associated with a reduction in productivities downstream. Gains from lower input tariffs accrue to firms that cannot secure duty exemptions—domestic-oriented firms and smaller exporters. Gains from upstream services FDI accrue mostly to firms that are further from the productivity frontier. Our results suggest that productivity growth in Pakistan would benefit from increased exposure of upstream sectors to global markets.

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  • Stefania Lovo & Gonzalo Varela, 2022. "Internationally Linked Firms and Productivity in Pakistan: A Look at the Top End of the Distribution," Journal of Development Studies, Taylor & Francis Journals, vol. 58(10), pages 2110-2131, October.
    • Handle: RePEc:taf:jdevst:v:58:y:2022:i:10:p:2110-2131
    DOI: 10.1080/00220388.2022.2096442
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    Cited by:

    1. Naseem Faraz & Omer Siddique & Asim Saeed, 2023. "Sectoral Total Factor Productivity In Pakistan," PIDE Research Report 2023:1, Pakistan Institute of Development Economics.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts

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