Abstract
The role of relative prices in determining the export performance of developing countries is now well established. Studies by Kravis [2], Mo-Geehan [3] and others have found that price competitiveness is essential for maintaining a rapid rate of export growth in both developed and developing countries. For Pakistan, Husain [1] has shown that changes in export prices resulting from changes in the export bonus scheme had a significant effect on raising the level of munufactured exports over the 1960-1967 period.
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