Enhancing Export Competitiveness : Part – III

Article Type

Article

Description

Another source of productivity and efficiency is attracting Foreign Direct Investment in export manufacturing and service industries. Pakistan’s FDI flows, although quite negligible relative to neighbouring countries, have been largely market seeking to meet the domestic economy needs – telecom, banking, oil and gas etc.

Studies have found a close correlation between export growth and FDI flows. The export sector in Pakistan has received almost next to nothing and has thus missed a huge opportunity in accessing global supply chains, technology and know-how, design, branding and intellectual property, marketing networks, managerial practices in addition to capital. Both China and Vietnam have benefitted enormously from foreign investors’ presence in export manufacturing. Foreign affiliates of multinational companies do positively influence domestic firms which imitate and adopt the best practices of these affiliates – production techniques, skills and marketing innovation.

Publication Source

The News

Publication Date

12-3-2021

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