A Note on the Consistency of Pakistan's Cotton-Cloth Statistics for Recent Years (Notes & Comments)

Stephen R. Lewis, Jr.

Abstract


This brief note is written in the hope that some further light
can be shed on the cotton-textile situation in Pakistan, since available
(and widely used)i data appear to be internally inconsistent. There
seems to be a rather startling inconsistency among the data (for the
1960's) on production, exports, and domestic prices of cotton cloth,
given reasonable assumptions about the income and price elasticity of
demand. The most likely explanation for the inconsistency is that the
cotton-textile production figures are currently being underestimated,
and that the growth rate of cotton-textiles is also being
underestimated. Since cotton textiles make up about one quarter of value
added in large-scale manu¬facturing industries in Pakistan, the effect
of a substantial understatement in the growth of the cotton-textile
industry on the growth rate of manufacturing could be quite marked.
There has been a very good performance rate in cotton-textile exports in
the past several years, both with respect to the rate of increase in
exports and the rising share of cotton-textile production that is
exported. It is this very promising improvement in export performance
that led to the questions raised here.

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DOI: https://doi.org/10.30541/v9i4pp.442-446

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