Impact of Economic, Social and Environmental Variables on Competitiveness of Automotive Industry: Evidence from Panel Data
International Journal of Economic Behavior and Organization
Volume 3, Issue 1, February 2015, Pages: 10-17
Received: Feb. 26, 2015; Accepted: Mar. 13, 2015; Published: Mar. 18, 2015
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Authors
Abdul Hannan, Atlas Honda Limited, Sheikhupura, Pakistan
Faheem Haider, Atlas Honda Limited, Sheikhupura, Pakistan
Nisar Ahmad, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan
Tahira Ishaq, Pakistan Institute of Development Economics, Islamabad, Pakistan
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Abstract
The study is aimed to examine the impact of economic, social and environmental factors on the competitiveness of automotive industry. Competitiveness of industry is measured by the Revealed Comparative Advantage (RCA) Index. Fixed effect model is estimated by using the data of 14 Asian countries for the period ranging from 1991 to 2012. Results show that competitiveness of automotive industry is positively related to economic performance, human capital development, urbanization and tariff rate while negatively affected by lending rate and carbon emission both in developed and developing nations of Asia. Findings of the study suggest that external factors should be given due consideration particularly lending rate, human capital development and tariff to improve the competitiveness of automotive industry. Automotive policies in developing countries should improve their human capital and encourage foreign investors with adequate protection to local industry.
Keywords
Competitiveness, Automotive Industry, Economic Growth, Education
To cite this article
Abdul Hannan, Faheem Haider, Nisar Ahmad, Tahira Ishaq, Impact of Economic, Social and Environmental Variables on Competitiveness of Automotive Industry: Evidence from Panel Data, International Journal of Economic Behavior and Organization. Vol. 3, No. 1, 2015, pp. 10-17. doi: 10.11648/j.ijebo.20150301.12
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