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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JANURAY 2011
VOL 2, NO 9
directional causality found between these variables in Toda and Yamamoto based
Granger causality test.
We conclude that manufacturing exports are crucial for Pakistan‘s long-term economic growth
and development. The following policies need to be taken for improving boosting
manufacturing exports and economic growth:
i. Government‘s emphasis must be on globally competitive industrialization to open the
way for stronger competitiveness and greater export diversification. So, priority must
be given to a quantum increase in manufactured exports as a part of economic
planning. And a new breed of exporters should be developed through human resource
development efforts.
ii. Industrial policy and trade policy should aim at promoting manufacturing exports.
iii. Textile, sports goods and surgical goods sector is the main exporting sector of
Pakistan, which is experiencing high cost of production because of high mark-up rates.
So, in order to increase these manufacturing exports and economic growth,
Government should reduce high mark-up rates.
iv. Rising costs of energy (gas, electricity and petrol), tariffs, cost of finance and wages
have increased the cost of production and made manufacturing exports uncompetitive
compared with other close competitors. So, there is a need to take initiatives to reduce
these costs.
v. It is important to direct resources to industries, where they are used most efficiently (as
successfully developing East Asian countries have shown). These industries can be
identified first as being outward oriented (export) industries and second as being
technology intensive in their use of inputs.
vi. There is a need to establish and promote new technology-intensive industries to
increase exports which also requires private and public funds.
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