IDEAS home Printed from https://ideas.repec.org/b/pid/pbooks/202408.html
   My bibliography  Save this book

Wheels Of Change: Tracing Pakistans Automotive Evolution Through Political Economy And Technology Acquisition

Editor

Listed:
  • Usman Qadir
    (Pakistan Institute of Development Economics, Islamabad)

Abstract

This book examines Pakistans success in technological and organizational capability development for enhancing competitiveness in its industrial sector, focusing on the automotive industry as a case study, under several policy regimes. Pakistan has had to face many adverse conditions since it gained independence and as a result its growth has been sporadic, with periods of growth spurts followed by periods of slow growth. Successful interventions supporting capability development have happened in other developing countries without ‘good governance’ and with rent-seeking so a deeper analysis of the institutional failures in Pakistan is required. The book locates Pakistan’s institutional choices and performance in the context of changes in its political settlement to explain why performance was weak at key points in the automotive industry’s history. The analysis focuses on the contests over potentially growth-enhancing rents in the context of the distribution of power between the groups and organizations affected by these policies. Policy had to be implemented in the context of extensive political clientelism that was increasing in its fragmentation with low levels of political stability and frequent changes in government. The proliferation of clientelist groups resulted in the state compromising on long term economic growth in an effort to ensure its short-term political sustainability. Production in the automotive industry has also become increasingly globalized in recent years and Pakistan has found it hard to break into global value chains on account of the weak technological capabilities that it could develop. Two case studies of relatively more successful instances of technology acquisition within the automotive industry of Pakistan show that even in this adverse policy environment, intervention can still assist some capability enhancement. The policy challenge is to develop instruments that can enable capability development on a broader level in the context of the clientelist processes that characterize the political settlement.

Suggested Citation

  • Usman Qadir (ed.), 2024. "Wheels Of Change: Tracing Pakistans Automotive Evolution Through Political Economy And Technology Acquisition," PIDE Books, Pakistan Institute of Development Economics, number 2024:08.
    • Handle: RePEc:pid:pbooks:2024:08
    as

    Download full text from publisher

    File URL: https://file.pide.org.pk/pdfpideresearch/book-wheels-of-change-tracing-pakistans-automotive-evolution-through-political-economy-and-technology-acquisition.pdf
    File Function: First Version, 2024
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anne O. Krueger, 1983. "Trade and Employment in Developing Countries, Volume 3: Synthesis and Conclusions," NBER Books, National Bureau of Economic Research, Inc, number krue83-1.
    2. Mancur Olson, 1996. "Distinguished Lecture on Economics in Government: Big Bills Left on the Sidewalk: Why Some Nations Are Rich, and Others Poor," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 3-24, Spring.
    3. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
    4. Dollar, David & Kraay, Aart, 2003. "Institutions, trade, and growth : revisiting the evidence," Policy Research Working Paper Series 3004, The World Bank.
    5. Archibugi, Daniele & Coco, Alberto, 2005. "Measuring technological capabilities at the country level: A survey and a menu for choice," Research Policy, Elsevier, vol. 34(2), pages 175-194, March.
    6. Rodrik, Dani, 1999. "Where Did All the Growth Go? External Shocks, Social Conflict, and Growth Collapses," Journal of Economic Growth, Springer, vol. 4(4), pages 385-412, December.
    7. Archibugi, Daniele & Coco, Alberto, 2004. "A New Indicator of Technological Capabilities for Developed and Developing Countries (ArCo)," World Development, Elsevier, vol. 32(4), pages 629-654, April.
    8. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross‐Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    9. Mushtaq H. Khan, 2013. "Technology Policies and Learning with Imperfect Governance," International Economic Association Series, in: Joseph E. Stiglitz & Justin Yifu Lin (ed.), The Industrial Policy Revolution I, chapter 2, pages 79-115, Palgrave Macmillan.
    10. Sanjaya Lall, 1996. "Understanding Technology Development," Palgrave Macmillan Books, in: Learning from the Asian Tigers, chapter 2, pages 27-58, Palgrave Macmillan.
    11. Redding, Stephen, 1999. "Dynamic Comparative Advantage and the Welfare Effects of Trade," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 15-39, January.
    12. Peter Wad, 2008. "The Development of Automotive Parts Suppliers in Korea and Malaysia: A Global Value Chain Perspective," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(1), pages 47-64.
    13. Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 3-39, January.
    14. Bengt-ake Lundvall & Bjorn Johnson, 1994. "The Learning Economy," Industry and Innovation, Taylor & Francis Journals, vol. 1(2), pages 23-42.
    15. Meghnad Desai & Sakiko Fukuda-Parr & Claes Johansson & Fransisco Sagasti, 2002. "Measuring the Technology Achievement of Nations and the Capacity to Participate in the Network Age," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 3(1), pages 95-122.
    16. A. R. Kemal, 1988. "Pakistan's Experience with Manufacturing of Components for Consumer Durablest," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(4), pages 863-873.
    17. Nancy L. Stokey, 1991. "Human Capital, Product Quality, and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 587-616.
    18. Amsden, Alice H, 1991. "Diffusion of Development: The Late-Industrializing Model and Greater East Asia," American Economic Review, American Economic Association, vol. 81(2), pages 282-286, May.
    19. Rene E. Ofreneo, 2008. "Arrested Development: Multinationals, TRIMs and the Philippines' Automotive Industry," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(1), pages 65-84.
    20. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 143-143.
    21. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    22. Posner, Richard A, 1975. "The Social Costs of Monopoly and Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 807-827, August.
    23. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    24. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    25. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    26. Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 297-321, May.
    27. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    28. Hellman, Joel S. & Jones, Geraint & Kaufmann, daniel, 2000. ""Seize the state, seize the day": state capture, corruption, and influence in transition," Policy Research Working Paper Series 2444, The World Bank.
    29. Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 1998. "Regulatory Discretion and the Unofficial Economy," American Economic Review, American Economic Association, vol. 88(2), pages 387-392, May.
    30. Frank C. Child, 1968. "Liberalization of the Foreign Exchange Market," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 8(2), pages 167-191.
    31. Peter Wad, 2009. "The automobile industry of Southeast Asia: Malaysia and Thailand," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 14(2), pages 172-193.
    32. Linsu Kim, 1999. "Learning and Innovation in Economic Development," Books, Edward Elgar Publishing, number 1690.
    33. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    34. Timor Sharan, 2011. "The Dynamics of Elite Networks and Patron–Client Relations in Afghanistan," Europe-Asia Studies, Taylor & Francis Journals, vol. 63(6), pages 1109-1127.
    35. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    36. Justin Barnes & Mike Morris, 2008. "Staying alive in the global automotive industry: what can developing economies learn from South Africa about linking into global automotive value chains?," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(1), pages 31-55.
    37. Boltho, Andrea, 1996. "The Assessment: International Competitiveness," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(3), pages 1-16, Autumn.
    38. Timothy J. Sturgeon & Olga Memedovic & Johannes Van Biesebroeck & Gary Gereffi, 2009. "Globalisation of the automotive industry: main features and trends," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 2(1/2), pages 7-24.
    39. William P. Rogerson, 1982. "The Social Costs of Monopoly and Regulation: A Game-Theoretic Analysis," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 391-401, Autumn.
    40. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-896, September.
    41. repec:bla:devpol:v:25:y:2007:i:5:p:531-552 is not listed on IDEAS
    42. Bardhan, Pranab & Udry, Christopher, 1999. "Development Microeconomics," OUP Catalogue, Oxford University Press, number 9780198773719.
    43. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    44. Chang, Ha-Joon, 1993. "The Political Economy of Industrial Policy in Korea," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 17(2), pages 131-157, June.
    45. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
    46. Zaidi, S.Akbar, 2005. "Issues in Pakistan's Economy," OUP Catalogue, Oxford University Press, edition 2, number 9780195979145.
    47. Burkhart, Ross E. & Lewis-Beck, Michael S., 1994. "Comparative Democracy: The Economic Development Thesis," American Political Science Review, Cambridge University Press, vol. 88(4), pages 903-910, December.
    48. Anne O. Krueger, 1983. "Trade and Employment in Less Developed Countries: The Questions," NBER Chapters, in: Trade and Employment in Developing Countries, Volume 3: Synthesis and Conclusions, pages 1-9, National Bureau of Economic Research, Inc.
    49. Pranab Bardhan, 2016. "State and Development: The Need for a Reappraisal of the Current Literature," Journal of Economic Literature, American Economic Association, vol. 54(3), pages 862-892, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Usman Qadir, 2016. "Technology Acquisition, Catching Up and Competitiveness in Pakistan," PIDE-Working Papers 2016:134, Pakistan Institute of Development Economics.
    2. Stela Cani, 2009. "Resource Abundance, Mineral Funds and Institutional Quality," Economics Discussion Papers em-dp2009-04, Department of Economics, University of Reading.
    3. Konstantinos Angelopoulos & Apostolis Philippopoulos, 2005. "The Role of Government in Anti-Social Redistributive Activities," CESifo Working Paper Series 1427, CESifo.
    4. Andreas Assiotis & Kevin Sylwester, 2013. "Do the effects of corruption upon growth differ between democracies and autocracies?," University of Cyprus Working Papers in Economics 06-2013, University of Cyprus Department of Economics.
    5. Karim Khan, 2015. "Endogenous Institutional Change and Privileged Groups," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(3), pages 171-195.
    6. Uwe Sunde, 2006. "Wirtschaftliche Entwicklung und Demokratie – Ist Demokratie ein Wohlstandsmotor oder ein Wohlstandsprodukt?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(4), pages 471-499, November.
    7. Sambit Bhattacharyya, 2011. "Growth Miracles and Growth Debacles," Books, Edward Elgar Publishing, number 13609.
    8. Pierre‐Guillaume Méon & Khalid Sekkat & Laurent Weill, 2009. "Institutional Changes Now And Benefits Tomorrow: How Soon Is Tomorrow?," Economics and Politics, Wiley Blackwell, vol. 21(2), pages 319-357, July.
    9. Davis, Lewis S., 2010. "Institutional flexibility and economic growth," Journal of Comparative Economics, Elsevier, vol. 38(3), pages 306-320, September.
    10. Siddiqui, Danish Ahmed & Ahmed, Qazi Masood, 2013. "The effect of institutions on economic growth: A global analysis based on GMM dynamic panel estimation," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 18-33.
    11. Mustaq H. Khan, 2003. "L'échec de l'État dans les pays en développement et les stratégies de réforme institutionnelle," Revue d’économie du développement, De Boeck Université, vol. 11(2), pages 5-48.
    12. Abdih, Yasser & Chami, Ralph & Dagher, Jihad & Montiel, Peter, 2012. "Remittances and Institutions: Are Remittances a Curse?," World Development, Elsevier, vol. 40(4), pages 657-666.
    13. Harashima, Taiji, 2017. "Should a Government Fiscally Intervene in a Recession and, If So, How?," MPRA Paper 78053, University Library of Munich, Germany.
    14. Axel Dreher & Pierre-Guillaume Méon & Friedrich Schneider, 2014. "The devil is in the shadow. Do institutions affect income and productivity or only official income and official productivity?," Public Choice, Springer, vol. 158(1), pages 121-141, January.
    15. Thorsten Beck & Luc Laeven, 2006. "Institution building and growth in transition economies," Journal of Economic Growth, Springer, vol. 11(2), pages 157-186, June.
    16. Méon, Pierre-Guillaume & Sekkat, Khalid, 2022. "A time to throw stones, a time to reap: how long does it take for democratic transitions to improve institutional outcomes?," Journal of Institutional Economics, Cambridge University Press, vol. 18(3), pages 429-443, June.
    17. Acemoglu, Daron & Johnson, Simon & Robinson, James & Thaicharoen, Yunyong, 2003. "Institutional causes, macroeconomic symptoms: volatility, crises and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 49-123, January.
    18. David Castells-Quintana & Maria del Pilar Lopez-Uribe & Tom McDermott, 2015. "Climate change and the geographical and institutional drivers of economic development," GRI Working Papers 198, Grantham Research Institute on Climate Change and the Environment.
    19. Konstantinos Angelopoulos & George Economides, 2008. "Fiscal policy, rent seeking, and growth under electoral uncertainty: theory and evidence from the OECD," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(4), pages 1375-1405, November.
    20. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2004. "On The Empirics of Foreign Aid and Growth," Economic Journal, Royal Economic Society, vol. 114(496), pages 191-216, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:pbooks:2024:08. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.