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This book examines the behaviour of private industrial investment in Pakistan in the 1960s, in the first half of which it rose at an unprecedented rate, followed by sharp decline, and then stagnation for the rest of the period. The approach adopted is institutional and empirical. The developments studied appeared to be very much the product of the institutional setting of Pakistan, which was different from that of most advanced countries but possibly not so dissimilar from that in many other developing countries. The study starts by analyzing the institutional setting termed as the corporate environment in which private industrial investment took place in this period so as to bring out its dramatis personae the monopoly houses, the government and the financial institutions, which were dependent on foreign aid for the foreign exchange loans which they granted. It then investigates empirically the behaviour of profitability in this period and the factors which influenced it, and shows that profitability is affected not only by measures taken by the government but that factors such as market structure and links between industrial and trading interests are important in influencing profitability at the industry level. It then explores the relationship of industrial investment to profitability and other factors, especially foreign loans in the peculiar corporate environment which existed in Pakistan in the 1960s. This analysis is carried out at the level of the firm, the monopoly house and across industries. ISBN - 9780521059374
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Pages : 276
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