Endnotes

¹This data is from the UNIDO database and the World Bank, World Development Indicators, 2002. It should be noted that these figures do not necessarily correspond with the figures given in the annual Pakistan Economic Survey.

² Pakistan Economic Survey 2003-04.

³ Thus, some 30-40 per cent of the trade handled by TNCs is actually within the firm (between different affiliated companies) and is not transacted on open markets (UNCTAD, 1999).

⁴ In some low technology activities like apparel, lead coordinators are international buyers rather than TNCs. The role of direct ownership (i.e. of FDI) in coordinating globalised activities depends on nature and pace of change of technology and availability of specialised suppliers; it is also changing rapidly over time as systems become more open.

⁵ UNIDO (2002) and Lall (2001.a) find at the country level that sustained growth of manufactured exports was associated with such upgrading.

⁶ We owe the original idea behind this index to C.H. Kwan (see for example Kwan, 2002) although we have developed the index in a slightly different way.

⁷ State Bank of Pakistan website.

⁸ Cotton fabrics and yarn were only a slightly smaller proportion of total exports in FY2003 as compared with the previous year: 20 per cent as opposed to 22 per cent (Federal Bureau of Statistics website).

⁹ The total export figures include special transactions like gold, works of art, electric power and so on. Their values are not shown in the table but are minuscule, accounting for around 0.1 per cent of total export earnings.

¹⁰ This score is arrived at in the following way. The share of each manufactured product in a country's total manufactured exports is multiplied by the sophistication score of that product in world trade; the figure is then totalled across all products.

¹¹ The dollar values of the top Chinese exports are, of course, much higher than those of Pakistan, but the size of the bubbles is geared to the value of its own exports; see Table 11 [PDF 23KB | 1 page].

¹² The analysis reported in section 4.3 assigned scores at the 3-digit level, so the ranks are not really comparable with those reported here, but the highest scoring product in the overall manufacturing ranks is synthetic fibres, a highly capital intensive medium technology product, which ranks 34 out of 181 manufactured products. The next most sophisticated textile product is special textile fabrics at rank 113; most clothing products start after rank 145.

¹³ This simple average tariff has been calculated as a percentage of total imports. The average tariff, if calculated as a percentage of dutiable imports, is 15.6 per cent. (Pakistan Economic Survey 2002-03)

¹⁴ The figure for 1995 comes from WTO (2002) and for 1985, 77 per cent, from World Bank (2002) Table 2.7.

¹⁵ State Bank of Pakistan website.

¹⁶ The figures for Pakistan are not substantiated by the Pakistan Integrated Household Survey (PIHS) for 1998-99 and 2001-02, which give gross enrolment rates of 40 and 41 per cent respectively.

¹⁷ Sources of these figures are again the UNESCO website.

¹⁸ This is based on the (unpublished) findings of a Commonwealth Secretariat mission to Pakistan in 1998 to analyse export competitiveness. One of the present authors (Lall) led that mission. The situation may, of course, have improved significantly since that time.

¹⁹ The source for royalty figures is UNIDO.

²⁰ Mathews (2001) discusses the collaboration between firms in Taipei,China in R&D consortia stimulated by government involvement. Lall (2001.a) discusses training initiatives by the government to support firms in Singapore.

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