'Pakistan Institute of Development Economics (PIDE)'
Doi
Abstract
This study considers the importance of firm characteristics in
explaining the degree of business constraints facing Pakistani firms in
the Investment Climate Survey. We quantify how firms with differing
characteristics experience particular problems. After controlling for
other factors, the largest differences in responses to business
constraints occur among firms that vary by manufacturing industry, and
among firms operating under different ownership structures or selling in
different markets. In some cases, firm size and firm location also play
an important role. The age of the firm generally does not lead to
significant differences. These results account for the heterogeneity of
firms better than others, and may be important for policy-makers to
develop more specific approaches to fostering the investment
climate