Khan, Rana Ejaz Ali and Khan, Tasnim and Maqsood, Muhammad Farqan (2010): Export potential of cottage industry: a case study of Sialkot (Pakistan). Published in: European Journal of Economics, Finance and Administrative Sciences , Vol. 27, (1. November 2010): pp. 158-164.
Download (90Kb) | Preview
Sialkot, the export city of Pakistan is earning $900 million per annum by exports. The major exports are the sports goods, surgical instruments, leather products, martial art instruments, musical instruments and sports wear. All these products are value-added by cottage industry. How the export potential of cottage industry in Sialkot may be increased,that is the question. The current paper estimated the export potential of the cottage industry by measuring it through Cobb-Douglas production function. The data has been collected from 354 cottage industrial units selected by random sampling. The results explain that labor, capital, experience and education of entrepreneur, and working conditions enhance the export potential of the units. The labor is more used in cottage industrial units as compared to capital so the elasticity of export production with respect to labor is higher as compared to capital. The football making units and other sports goods producing units use a minor ratio of capital and largely depend upon labor for production. Although leather and surgical producing units use higher ratio of capital in production. The education and experience of the entrepreneur also lead to increased export production. The better working condition increases the export production by raising the productivity of labor. The study proposes the education and training of the individuals involved in cottage industry and provision of good working conditions by the Export Promotion Bureau, Sialkot Chamber of Commerce and Industry and vocational training institutes in their respective areas. The surprising results of the study are that credit availed by the units decrease the export production while distance to market from the unit raises the export production. The relationship between credit and export production explains the misutilization of credit while positive association between distance to market and export production explains the involvement of more number of household members in production in the units away from city as compared to the units situated near to market or city. The misutilization of loaning is needed to be checked.
|Item Type:||MPRA Paper|
|Original Title:||Export potential of cottage industry: a case study of Sialkot (Pakistan)|
|English Title:||Export Potential of Cottage Industry: A Case Study of Sialkot (Pakistan)|
|Keywords:||Cottage industry, Pakistan, Exports, Cobb-Douglas production function, Sialkot|
|Subjects:||N - Economic History > N8 - Micro-Business History
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J23 - Labor Demand
|Depositing User:||Rana Ejaz Ali Khan|
|Date Deposited:||17. Nov 2011 14:29|
|Last Modified:||13. Feb 2013 09:07|
Abedini J. and N. Peridy (2009) The Emergence of Iran in the World Car Industry: An Estimation of its Export Potential. The World Economy, 32:5,790-818.
Ahmed, M. A. (2009) The Romance of Promotion of Small and Medium Enterprises.unpublished manuscript.
Akram, W. B. (2008) Pakistan’s Export Potential: A Gravity Model Analysis. SBP Working Paper Series, State Bank of Pakistan (SBP), Pakistan
Ali, A. M. (2007) The Competitiveness and Viability of Cluster Based Cottage Industries The Case of Handloom Sector in Ethiopia. Paper presented in Ronald H. Brown Institute for Sub-Saharan Africa 1st International Business Conference, Pretoria
Bahar, H. (2001) Financing for Micro-Enterprises, Small, Medium-Sized and Cottage Industries: Bangladesh Perspective. Paper presented at the ESCAP-ADB Joint Workshop on Mobilizing Domestic Finance for Development: Reassessment of Bank Finance and DebtMarkets in Asia and the Pacific held in Bangkok, 22-23
Brata, A. G. (2007) Spatial Concentration of the Informal Small and Cottage Industry in Indonesia. MPRA Paper No. 12622, http://mpra.ub.uni-muenchen.de/12622/ retrieved on 09 August 2009
Eita, J. H. and A. C. Jordaan (2007) South Africa’s Wood Export Potential Using a Gravity Model Approach. Working Paper Series No. 2007-23. Department of Economics, University ofPretoria, South Africa.
Ezechi, N. C. (1999) Vocational/Technical Education and the Development of Cottage-Industries in Nigeria. Journal of Nigerian Educational Research Association, 13:1.
Junejo, M. A., C. L. Rohra and H. A. Kanasro (2009) Investigating the Major Constraints in Creation and Growth of Small Scale Industries of Pakistan. Australian Journal of Basic and Applied Sciences, 3:4, 3116-3122
Remi, A. J., Abdul-Azeez., I. Adegoke and N. A. Opoola (2010) Impact of Socio-Economic Factors on the Performance of Small-Scale Enterprises in Osun State, Nigeria. International Business Research, 3:2, 92-99.
Rubayat, J. (2009) Financing the Small Scale Industries in Bangladesh the Much-Talked about,but less Implemented Issue. (ASBBS Annual Conference: Las Vegas), Proceedings of ASBBS.Vol. 16, No. 1.
Tarmidi, L. T. (2005) “The Importance of MSEs in Economic Development of Developing APEC Countries. Paper presented at the APEC Study Center Consortium Conference 2005,Jeju, Korea, 22-25 May 2005.
Wu C. and L. K. Cheng (1999) The Determinants of Export Performance of China's Township-Village Enterprises. Available at www.econ.kuleuven.ac.be/licos/dp/ DP1999/DP82tve.