Competitiveness and Export Performance of Pakistan’s Mineral Sector in Global Market: A Constant Market Share Analysis

Abstract

The aim of the current research is to measure the export competitiveness in the mineral sector of Pakistan in the world market. This study collected the data from International Trade Center (ITC) and employed Constant Market Share Analysis (CMSA) to quantify the competitiveness of mineral exports during 2010-2021. The CMSA depicts the growth of any country's exports in terms of their competitiveness, market, and product structure. In addition, the change in total exports decomposes at both first and second level decomposition. This study finds out that average structural effect (SE), total effect (TE), competitive effect (CE), commodity effect (COME), and specific competitive effect (SCE)are positive from 2010-2021, while average residual effect (RE), market effect (ME), interaction effect (IE), general competitive effect (GCE) are negative. The current imperative is to explore and harvest natural assets utilizing cutting-edge technology and skill. Pakistan should concentrate on diversifying its mineral resources, both in terms of the nature of the products and the markets they serve. For increased profits, the nation should target those markets with relatively larger profit margins and advantageous terms of trade.