IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/34427.html
   My bibliography  Save this paper

Export potential of cottage industry: a case study of Sialkot (Pakistan)

Author

Listed:
  • Khan, Rana Ejaz Ali
  • Khan, Tasnim
  • Maqsood, Muhammad Farqan

Abstract

Sialkot, the export city of Pakistan is earning $900 million per annum by exports. The major exports are the sports goods, surgical instruments, leather products, martial art instruments, musical instruments and sports wear. All these products are value-added by cottage industry. How the export potential of cottage industry in Sialkot may be increased,that is the question. The current paper estimated the export potential of the cottage industry by measuring it through Cobb-Douglas production function. The data has been collected from 354 cottage industrial units selected by random sampling. The results explain that labor, capital, experience and education of entrepreneur, and working conditions enhance the export potential of the units. The labor is more used in cottage industrial units as compared to capital so the elasticity of export production with respect to labor is higher as compared to capital. The football making units and other sports goods producing units use a minor ratio of capital and largely depend upon labor for production. Although leather and surgical producing units use higher ratio of capital in production. The education and experience of the entrepreneur also lead to increased export production. The better working condition increases the export production by raising the productivity of labor. The study proposes the education and training of the individuals involved in cottage industry and provision of good working conditions by the Export Promotion Bureau, Sialkot Chamber of Commerce and Industry and vocational training institutes in their respective areas. The surprising results of the study are that credit availed by the units decrease the export production while distance to market from the unit raises the export production. The relationship between credit and export production explains the misutilization of credit while positive association between distance to market and export production explains the involvement of more number of household members in production in the units away from city as compared to the units situated near to market or city. The misutilization of loaning is needed to be checked.

Suggested Citation

  • Khan, Rana Ejaz Ali & Khan, Tasnim & Maqsood, Muhammad Farqan, 2010. "Export potential of cottage industry: a case study of Sialkot (Pakistan)," MPRA Paper 34427, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34427
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/34427/1/MPRA_paper_34427.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aloysius Gunadi, Brata, 2007. "Spatial Concentration of the Informal Small and Cottage Industry in Indonesia," MPRA Paper 12622, University Library of Munich, Germany, revised 2008.
    2. Joel Hinaunye Eita & André C. Jordaan, 2007. "South Africa’s Wood Export Potential Using a Gravity Model Approach," Working Papers 200723, University of Pretoria, Department of Economics.
    3. Javad Abedini & Nicolas Péridy, 2009. "The Emergence of Iran in the World Car Industry: An Estimation of its Export Potential," The World Economy, Wiley Blackwell, vol. 32(5), pages 790-818, May.
    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. Sergei S. Sudakov & Alexey A. Zinchenko, 2024. "Export Potential Assessment Methodology: The Case of the Republic of Uzbekistan," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 61-77, February.
    2. Antoine ABI ZEID, 2021. "Untapped export potential in developing countries: evidence from the car industry," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 54, pages 117-144.
    3. Syeda Khaleda & Yuji Murayama, 2015. "Identification of Suitability of Sites for Microenterprises for Value Chain Development: A Study in Gazipur District, Bangladesh," Growth and Change, Wiley Blackwell, vol. 46(2), pages 274-291, June.
    4. Hippolyte, Rommell, 2012. "Determinants of Barbados Exports: Preliminary Analysis using a Gravity Model Approach," MPRA Paper 75321, University Library of Munich, Germany, revised Jun 2015.
    5. Peridy Nicolas J & Abedini Javad, 2008. "The Growing Influence of Emerging Countries in the World Car Industry: An Estimation of Export Potentials in a World Trade Model," Global Economy Journal, De Gruyter, vol. 8(3), pages 1-28, September.
    6. Syeda Khaleda & Yuji Murayama, 2013. "Geographic Concentration and Development Potential of Poultry Microenterprises and Value Chain: A Study Based on Suitable Sites in Gazipur, Bangladesh," Social Sciences, MDPI, vol. 2(3), pages 1-21, August.
    7. Tsang, Cheuk Yan & Shakur, Shamim, 2017. "New Zealand’s Trade Prospects in an Uncertain Trans-Pacific Partnership (TPP) Environment: Results from Gravity Model," 2017 Conference, October 19-20, Rotorua, New Zealand 269528, New Zealand Agricultural and Resource Economics Society.
    8. Ebrahim Soltani & Jawad Syed & Ying-Ying Liao & Abdullah Iqbal, 2015. "Managerial Mindsets Toward Corporate Social Responsibility: The Case of Auto Industry in Iran," Journal of Business Ethics, Springer, vol. 129(4), pages 795-810, July.
    9. Feng, Sida & Li, Huajiao & Qi, Yabin & Guan, Qing & Wen, Shaobo, 2017. "Who will build new trade relations? Finding potential relations in international liquefied natural gas trade," Energy, Elsevier, vol. 141(C), pages 1226-1238.
    10. Mojgan Bahrami Samani Author_Email: Samani_518@yahoo.com.sg & Ali Attafar & Naser Khani Khouzani, 2011. "A Conceptual Model For Iran’S Car Industry Customers’ Loyalty," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-184, Conference Master Resources.
    11. Azam HAGHKHAH & S. Mostafa RASOOLIMANESH & Ali A. ASGARI, 2020. "Effects Of Customer Value And Service Quality On Customer Loyalty: Mediation Role Of Trust And Commitment In Business-To-Business Context," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 12(1), pages 27-47, March.
    12. Vasilii Erokhin & Gao Tianming & Anna Ivolga, 2021. "Cross-Country Potentials and Advantages in Trade in Fish and Seafood Products in the RCEP Member States," Sustainability, MDPI, vol. 13(7), pages 1-40, March.
    13. Alireza Javanmardi Kashan & Kavoos Mohannak & Mirko Perano & Gian Luca Casali, 2018. "A Discovery of Multiple Levels of Open Innovation in Understanding the Economic Sustainability. A Case Study in the Manufacturing Industry," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    14. Masoud Movahed, 2020. "Industrializing an Oil‐Based Economy: Evidence from Iran's Auto Industry," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(7), pages 1148-1170, October.

    More about this item

    Keywords

    Cottage industry; Pakistan; Exports; Cobb-Douglas production function; Sialkot;
    All these keywords.

    JEL classification:

    • N8 - Economic History - - Micro-Business History
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

    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:pra:mprapa:34427. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.