Open AccessThe Contribution of Pakistan's Large Scale Manufacturing Industries Towards Gross National Product at World Prices
Author(s) -
A. R. Kemal
Publication year - 1974
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v13i1pp.1-12
Subject(s) - economics , manufacturing sector , incentive , international economics , gross domestic product , subsidy , product (mathematics) , scale (ratio) , international trade , monetary economics , agricultural economics , market economy , macroeconomics , physics , geometry , mathematics , quantum mechanics
Over the period 1949/50 to 1970/71, Pakistan's large-scalemanufacturing sector grew at a compound rate of more than 15 per cent.Its share of GNP increased during this period from 1.5 per cent to 9.4per cent. Various factors contributed to this growth, not the least ofwhich were the various incentives provided to the manufacturing sectorvia tariffs, restrictive import licensing, tax holidays and anovervalued official exchange rate. Recently, several studies, and mostnotably an OECD study by Little, Scitovsky and Scott [10] (hereafterreferred to as LSS) questioned the meaning of the growth rates andsectoral shares of manufacturing sector when the goods produced in thesesectors are valued at prices distorted by various subsidy and traderestricting policies. They concluded that a better measure of themanu¬facturing sector's contribution could be obtained by valuing acountry's gross national product not at domestic prices but at worldprices—i.e. the prices that would obtain in the country were there notrade tax or quotas.