Abstract
In recent years Pakistan has faced a rapidly growing services sector which has lead some observers to believe that there is a transfer of resources occurring in Pakistan from the tradable to the non-tradable sector, hence causing the Dutch Disease in the economy. However no precise response has been offered on this subject. This paper seeks to provide empirical evidence on the question of the existence of Dutch Disease in Pakistan by using Linda Kamas's model on Dutch Disease. The percentage change in the growth of the tradable and the non-tradable sectors in Pakistan is calculated by using data from the Economic Survey of Pakistan from the Fiscal Year (FY) 1995-1996 to the FY 2006-2007. It is found that although the non-tradable sector growth has increased by a little larger amount than the growth of the tradable sector, there is still steady increase in the tradable sector growth. Hence empirical evidence indicates that the Dutch Disease does not exist in Pakistan.
Keywords
Clusters, Networks, Small and Medium Scale Enterprises, SMEs, Sri Lanka, Pakistan
DOI
https://doi.org/10.54784/1990-6587.1335
Journal of Economic Literature Subject Codes
O32, L2
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Dasanayaka, S. (2009). The development of informal sector Small and Medium scale Enterprises through formation of cluster and networking: A case study based on Sri Lanka and Pakistan. Business Review, 4(2), 107-122. Retrieved from https://doi.org/10.54784/1990-6587.1335
Submitted
April 13, 2021
Published
July 01, 2009
Included in
Entrepreneurial and Small Business Operations Commons, Growth and Development Commons, International Economics Commons
Publication Stage
Published
