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Research Article Open Access

The Impact of Industrial Policy on Export Performance of Pakistan


The current study highlight the relationship between industrial policy and export performance in Pakistan from period 1980-2017 keeping the determinants of export performance indicators i.e. Export Sophistication, Export Diversification and Export Competitiveness constant while focusing only on the instruments of Industrial Policy i.e. Import Tariff, Export Subsidy, Rebate, Export Processing Zones, R&D expenditures and industrial expenditure using Co-Integration and ECM. The study confronted that there is significant relationship exists between industrial policy and export performance both in short run and long run with different rate of speed of adjustment. Import tariff have negative significant relationship with export performance while Export Subsidy and Export Rebate play insignificant role and R&D expenditure, Export Processing Zones and Industrial Expenditures play significant positive role and Industrial Policy work more effectively in Democracy as compare to military regimes.

 Amir Azam

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