Open AccessInventory, Marketing and Markups of Exporters: The Case of Spinning, Weaving and Finishing Textile Sector of Pakistan
Author(s) -
Imtiaz Ahmad Mr.,
Zafar Mahmood Mr.
Publication year - 2018
Publication title -
the lahore journal of economics
Language(s) - English
Resource type - Journals
eISSN - 1811-5446
pISSN - 1811-5438
DOI - 10.35536/jle.2018.v23.i2.a1
Subject(s) - weaving , business , textile industry , intensity (physics) , r&d intensity , marketing , economics , commerce , engineering , management , mechanical engineering , physics , archaeology , quantum mechanics , history
This paper studies the impact of inventory-intensity, marketing-intensity and firm size on the markups of exporting firms. We used audited financial statement data of publicly listed companies in the spinning, weaving and finishing industry within the textiles sector of Pakistan. We document five observations: 1) average markup of exporters is relatively higher than non-exporters; 2) there is higher dispersion in markups of non-exporters relative to exporters; 3) large firms have relatively higher markup and marketing-intensity; 4) firms which have higher marketing- and inventory-intensity also have higher markups; and 5) exporters have relatively higher markup elasticity with respect to marketing-intensity, inventory-intensity and growth in inventory-intensity.