Open AccessGrowth and Structural Change in Pakistan's Manufacturing Industry: Reply
Author(s) -
S. R. Lewis,
Ronald Soligo
Publication year - 1965
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/v5i4pp.663-665
Subject(s) - economics , value (mathematics) , substitution (logic) , consumption (sociology) , relative price , manufacturing , agricultural economics , production (economics) , commerce , international economics , monetary economics , business , microeconomics , mathematics , social science , statistics , marketing , sociology , computer science , programming language
Gustav Papanck's comments on changes in relative prices amongmanu¬factured goods are, indeed, important. As he notes, however, thecorrection to constant prices would not change the measure of theimportance of import sub¬stitution in explaining the growth of any givenindustrial group1. Also, for the period 1954/55 to 1963/64, thecontribution of import substitution to total growth in value added inconsumer goods industries is only slightly greater than thecon¬tribution of import substitution to growth in value added in allindustries (21.0 per cent for consumer goods as opposed to 19.4 per centfor all industries). In¬creasing the weight of consumption goodsindustries to reflect changes in relative prices would increase theimportance of import substitution in explaining growth in value added inall industries very slightly. For the period 1959/60 to 1963/64 when,according to Dr. Papanek's data, the fall in the relative prices ofcon¬sumer goods was the greatest, increasing the weight of consumergoods indus¬tries would actually reduce the contribution of importsubstitution to growth in value added for all industries.