Muhammad Shahid Maqbool, Sofia Anwar, Hafeez-Ur-Rehman and Tahir Mahmood
The present study, utilizing the constant market share analysis, aims at measuring the competitiveness of the exports of Pakistani leather products. The constant market share analysis (CMSA) describes the development of competitiveness, market and product structure of the exports of any economy. Moreover, it decomposes the total change in exports at both the first and second level decomposition. The time series data of HS-4 digits for the time span ranging from 2003-2014 has been taken from the International Trade Centre (ITC). The findings of the study illustrate that average total effect, structural effect, commodity effect, general competitive effect, specific competitive effect were positive, while average competitive effect and market effect were negative from 2003-08. Furthermore, the results indicate that the total effect, structural effect and specific competitive effect were positive, whereas competitive effect, commodity effect and general competitive effect were negative from 2009-14.The findings of the analysis reveal that Pakistan has the potential to enhance its leather exports to the developed economies provided the diversification is adopted in product development as well as market.
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