Comparative Advantage of Leather Industry in Pakistan with Selected Asian Economies

Sadaf Shahab, Muhammad Tariq Mahmood


The aim of this paper is to analyze the trade specialization in the leather products between some selected Asian economies, with particular focus on Pakistan. For which, a measure of Revealed Comparative Advantage (RCA Balassa Index) is used. The analysis shows that Pakistan has a high comparative advantage in leather products over all the selected economies during the period of study. The paper highlights the problems faced by the leather industry and identifies some immediate policy action to be taken to improve the performance of the leather industry in the light of evidence.

Keywords: Revealed Comparative advantage; Balassa Index; Exports; Skill Specialization

JEL Classifications: F10; F11; F12; F19

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