Special Edition-07.pdf - Lahore School of Economics

More documents

Recommendations

Info

34 Shamyla Chaudry make better use of the available resources. The Global Competitiveness Index (GCI) incorporates nine factors that lead to increased productivity and competitiveness. The GCI incorporates the concept of stages of development, attaches different weights to different sub-indices and provides individual countries with a useful tool to identify the barriers to competitiveness. The pillars are divided into three broad categories, those being the basic requirements, efficiency enhancers and innovation and sophistication factors. These are then further sub-divided into the nine pillars, that is, institutions, infrastructure, macro economy, health and primary education, higher education and training, market efficiency (goods, labor, financial), technological readiness, business sophistication and innovation. Pakistan, India and China are classified as factor driven economies with a GDP per capita of less than $2000. For such economies the basic requirement sub-index is the most important as it has the highest weight attached to it in constructing the GCI. Economies with GDP per capita ranging from $3000 to $9000 are classified as efficiency driven economies, whereas countries with GDP per capita greater than $17,000 are classified as innovation driven economies. Naturally all three categories assign different weights to the three sub indices. Using the three weights the GCI has been constructed for Pakistan, India and China. Table-II Weights Pakistan India China Factor driven 3.66 4.44 4.24 Efficiency driven 3.585 3.56 4.125 Innovation driven 3.594 4.461 4.029 Equal weights 3.629 4.47 4.067 Source: GCI index 2005-2006) Using different weights we can see that for all the countries the GCI score deteriorates as we move from factor driven weights to innovation driven weights and only in the case of equal weights, does India show a minor improvement of 0.03 where as Pakistan and China both lose ground. This contradicts the report on the state of Pakistan’s competitiveness that asserted that by assigning equal weights to the sub-indices Pakistan’s score could have been relatively higher. Referring to the Table-III one can see a stark contrast between the three economies that have been classified as factor driven economies. Analysis has been provided for such differences. Under the first four pillars
Increasing Global Competitiveness: A Case for the Pakistan Economy 35 which make up the basic requirement category, except for infrastructure, health and education, Pakistan’s ranking has fallen. The fifth, sixth and seventh pillars that fall under the efficiency enhancer’s category have shown stagnation. Considering the eighth and the ninth pillar that come under innovative factors, Pakistan has slid under the eighth pillar but has shown considerable improvement in the ninth pillar. Factor driven economies such as Pakistan define competition based on factor endowments such as unskilled labor and natural resources. Today Pakistan lags behind in all the categories of the GCI index. Though the figures show an improvement in Pakistan’s rank from 98th to 91st, this does not indicate any improvement but merely the fact that more countries have been included in the index. Health and education when compared to India (5.9) and China (6.44) are weak areas for Pakistan (4.79). Human capital development is the weakest in Pakistan as indicated by the higher education and training (fifth pillar). Pakistan is a low wage, labor surplus economy with low productivity. However, firm-level comparisons suggest that while wages in Pakistan are low by international standards, they are often significantly higher than those in the Sub-continent. Slow growth in private investment in the large scale manufacturing sector has dampened Pakistan’s economic growth. Pakistan has liberalized trade but highly protected domestic markets have reduced the incentives to exports. Also high costs and poor functioning of infrastructure are considered to be harmful impediments for Pakistan’s growth.
Page 1: Special Edition ISSN 1811-5438 THE
Page 5: THE LAHORE JOURNAL OF ECONOMICS Con
Page 8 and 9: Monetary, Fiscal and Financial Sect
Page 11 and 12: The Lahore Journal of Economics Spe
Page 13 and 14: Reforming the Government in Pakista
Page 25: Reforming the Government in Pakista
Page 28 and 29: 18 A. R. Kemal export product would
Page 30 and 31: 20 A. R. Kemal three indicators, Pa
Page 32 and 33: 22 A. R. Kemal Rank Score Efficienc
Page 34 and 35: 24 A. R. Kemal while productivity g
Page 36 and 37: 26 A. R. Kemal across the globe whi
Page 38 and 39: 28 A. R. Kemal V. Conclusions Pakis
Page 43: Increasing Global Competitiveness:
Page 47 and 48: Increasing Global Competitiveness:
Page 55 and 56: Monetary and Fiscal Policies 45 sys
Page 57 and 58: Monetary and Fiscal Policies 47 200
Page 59 and 60: Monetary and Fiscal Policies 49 (es
Page 61 and 62: Monetary and Fiscal Policies 51 The
Page 63 and 64: Monetary and Fiscal Policies 53 The
Page 65 and 66: Monetary and Fiscal Policies 55 Thi
Page 67 and 68: Monetary and Fiscal Policies 57 Whi
Page 69 and 70: Monetary and Fiscal Policies 59 exc
Page 71 and 72: Monetary and Fiscal Policies 61 mat
Page 73 and 74: Monetary and Fiscal Policies 63 Tax
Page 75: Monetary and Fiscal Policies 65 Ref
Page 78 and 79: 68 Shakil Faruqi Currently, the fin
Page 80 and 81: 70 Shakil Faruqi crises, or both. T
Page 82 and 83: 72 Shakil Faruqi system. The crowdi
Page 84 and 85: 74 Shakil Faruqi The financial stre
Page 86 and 87: 76 Shakil Faruqi taking activities
Page 88 and 89: 78 Shakil Faruqi In spite of attent
Page 90 and 91: 80 Shakil Faruqi change of this mag
Page 92 and 93: 82 Shakil Faruqi position which beg
Page 94 and 95:
84 Shakil Faruqi became insolvent a
Page 96 and 97:
86 Shakil Faruqi 2009, the CAR for
Page 98 and 99:
88 Shakil Faruqi ratio of net inter
Page 100 and 101:
90 Shakil Faruqi risk has to be man
Page 102 and 103:
92 Shakil Faruqi through a few roun
Page 104 and 105:
94 Shakil Faruqi Crockett, Andrew:
Page 106 and 107:
96 Shakil Faruqi State Bank of Paki
Page 108 and 109:
98 Muhammad Arshad Khan and Sajawal
Page 110 and 111:
100 Muhammad Arshad Khan and Sajawa
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 137 and 138:
The Lahore Journal of Economics Spe
Page 139 and 140:
Pakistan’s External Trade: Does E
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Implications for Economic Reforms i
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Economic Effects of the Recently Si
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Determinants of Female Labor Force
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
11. All references used in the text
Page 252:
The Lahore School of Economics The
show all

Special Edition-07.pdf - Lahore School of Economics

Create successful ePaper yourself

Delete template?

Save as template?