Determinants of Leather Goods Exports: A Case of Pakistan

Abstract

This paper attempts to examine the impact of major variables affecting export performance of leather goods from Pakistan using primary data source. The exporters from Punjab province were taken as the sampling frame as they share almost 90 percent of total leather exports from Pakistan. In Punjab, leather production and export facilities are primarily located in district Sialkot and Kasur. A representative sample of 40 leather exporters was selected purposively from total population of leather exporters in these districts. The impact of major variables on export of leather goods i.e. jackets was explored for the two main markets viz. USA and Germany by employing double log form of regression analysis. In case of the USA market, value of adjusted R 2 was 0.72 whereas the F-value was 15.40. The estimates of regression analysis revealed that experience and education of exporters, purchase price of raw material and ISO certification 9000 were the significant variables whereas marketing cost and energy crises showed insignificant impact on leather exports from Pakistan to the USA market. On the other hand, for the German market, value of adjusted R 2 was 0.74 whereas the F-value was 16.73. Experience of exporters, purchase price and energy crises were the significant variables whereas education of exporters, marketing cost and ISO certification showed insignificant impact.

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