Determinants of Export Demand of Textile and Clothing Sector of Pakistan: An Empirical Analysis

This paper attempts to evaluate the determinants of export demand of textile and clothing sector of Pakistan. Moreover it estimates coefficients of the variables of the study. This study uses co-integration approach to check the long run relationship between export demand and its determinants. Results show that world income is the major determinant of export demand as it shows high coefficient of income for export demand of textile and clothing sector while trade openness is also second major determinant of export demand which is the part of the model as the proxy of trade restriction. Rest of the variables also shows their significant contribution in determining the export demand. Study also reveals the long run relationship between the export demand and explanatory variables. JEL Classification: