The Role of Automobile Sector in Global Business Case of Pakistan

Abstract

The global automobile sector is among the driving forces of worldwide economies. Similarly in Pakistan, the automobile sector is the one of greatest industries. Although the automobile is one of the leading private sectors in Pakistan, the industry is largely protected from the external race. Over the eras, the automotive manufacturing consumes made a known run-of-the-mill presentation in rapports of continual and continuous progress. The vehicle manufacturing of Pakistan ensures not to partake a noteworthy part in the overall additional worth of the industrial segment. This study is finding out the effects of high duties, production, technology, and government policies on automobile growth in Pakistan. It will contribute to other important factors that affect the growth of the Automobile Industry worldwide and specially in Pakistan. Many studies use the Balassa index to analyse comparative global trade benefits, which have been shown (particularly in agriculture), but the selected automotive industry has novel study possibilities. This research focuses on the competitiveness of the car industry, a crucial sector because of its high added value, competitive market, growing technical demands and a high level of employment. The objective of our article is to analyse the comparative benefits indicated by Markov's transition probability and the caplan-meier survival function of the global car trade, and the duration and stability of the Balassa indices. Data sources for 1997-2016 are worldwide HS6 car shipments. The article has arrived at several findings. Initially, analysing the global vehicle trade, it was found that the USA, China, Germany and Japan were the greatest vehicle manufacturers, but in the time examined, the main exporters were Germany, Japan and Canada, collectively accounting for 40% of all goods shipped, with 71% of the top 10 nations. Second, the most traded/exported automotive product, as we analysed it, was a worldwide vehicle with just dazzling internal ignition (1500-300cm 3) (870323), representing more than 40% of the whole 1997-2016 export of vehicles. Third, the Balassa calculations reveal that in every period evaluated by the most prominent automotive exporters in the world, Spain and Japan had the largest comparative advantages. This is a descriptive correlational study and the primary purpose is to examine variables and relationships. This study is conducted in the education sector in Karachi, Pakistan with four variables to investigate the causal relationship among different variables. This study constructed a conceptual framework to illustrate a causal relationship by defining the relevant variables. It indicates the independent variable (the cause) and the dependent variable (the effect). There is a positive relationship between production and automobile growth. The effects of Duties are 0.294 on automobile growth and the effect of government policy is 0.177 on automobile growth and the effect of production is 0.152 on automobile growth and the effect of technology is 0.150.

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