CREB - Center for Research in Economics and Business

Benchmarking of Productivity in Pakistan’s Readymade Garment Sector

Project members:
Theresa Chaudhry, Lahore School of Economics
Azam Chaudhry, Lahore School of Economics
Mahvish Faran, Lahore School of Economics/University of Sheffield
Christopher Woodruff, University of Oxford

Rocco MacChiavello, London School of Economics

The project has been developed under the firm capabilities programme of the International Growth Centre (IGC). There is significant potential for expansion in Pakistani exports especially keeping in mind the fact that the European Union has recently granted Pakistan GSP Plus status. That said, expanding exports must be accompanied by improvements in productivity if any export surges are to be sustained over the coming years. The pilot phase of the project will be used to understand bottlenecks to increasing productivity with the aim to develop productivity-enhancing interventions for the sector, to be 4 evaluated through the method of a Randomized Controlled Trial (RCT).

So far, detailed production data has been collected from a sample of eight firms, along with surveys of production surveys from six of these. Analysis of the data to understand intra-firm and inter-firm variation in productivity is nearly complete.

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