A Framework for Export Pattern Analysis Using Comparative Advantages

This study analyzed the changes in the structure and composition of Pakistan's manufacturing exports, export competitiveness, trends, challenges and comparative advantage in manufacturing exports sectors of Pakistan at Harmonized coding system HS-2 digit level and at Standard International Trade Classification SITC -rev -3 levels. A time series study was conducted for the period of 2000-2011.Revealed comparative advantage index (RCA) by Balassa (1965) was used to measure the export pattern of a country. This study provides an in-depth analysis on the sectoral level regarding the ranking of manufacturing exports sectors on the basis of RCA as well as which sector currently exhibits comparative advantage/ disadvantage in the global competitive markets, since 2000. The study also examined the relative positioning of manufacturing exports sectors of Pakistan i.e. competitive threatening, emerging and weak position for 157 products at SITC rev-3 level. Moreover this study also identified that which sect oral product has potential to capture a big share in the world market. RCA results revealed that Pakistan's exports profile have shifted towards high value-added and technology embedde