Heterogeneity, sunk cost, and export performance: A firm level study of Pakistan's textile sector.

ABSTRACT: The textile sector is a significant exporting sector of Pakistan. This study examines the determinants of the export performance of Pakistani textile firms using firm-level panel data from 2008 to 2018. Under the framework of the dynamic System Generalized Method of Moment (SGMM) methodology, our findings suggest that both sunk costs and firm-specific characteristics like productivity, age, and size are important determinants of textile exports. Further, the study also observes that firms with a high number of export destinations and greater product diversification tend to export more. The year-specific dummies reveal that textile export performance is adversely affected by the energy crisis in 2012. We recommend that Pakistan should support large, experienced, and productive textile expor

SUBMITTER: Atif RM 

PROVIDER: S-EPMC10336437 | biostudies-literature | 2023 Jul

REPOSITORIES: biostudies-literature