Implications of Export Performance and Competitiveness in Leather Sector of Pakistan: An Empirical Investigation

Abstract

Present study aims to empirically investigate the export performance and competitiveness of leather and leather products in Pakistan during 2004-2019. This study obtained the data from the ITC and a mixture of “Revealed Comparative Advantage indices”, such as RSCA, RCA, Vollrath, RMA, RTA and NEI have been utilized to analyze the extent of competitiveness and comparative advantage. The results of RCA, RSCA and Vollrath indices indicate a strong comparative advantage in the leather sector throughout the selected time span. The RMA index illustrates that Pakistan has the competitive advantage during 2004-2019. The RTA index also portrays a net comparative advantage in the leather sector. In addition, the findings of NEI depict that Pakistan continued the net-exporter of this sector during the selected period of time. The study suggests that Pakistan should reduce taxes and duties on imported machinery, fix the exchange rate, enhance research and development and target new markets.