摘要：Industrial clusters and special economic zones are key areas of focus for
industrial policy makers who are aiming to expand the industrial base and increase
competitiveness. Thus, the role of development of industrial clusters in the
productivity improvement of manufacturing firms merits attention. We use the firmlevel
Census of Manufacturing Industries (CMI) and Directory of Industries (DOI)
datasets to empirically investigate the relationship between agglomeration and firm
level total factor productivity for different sectors in Punjab, Pakistan. Our findings
suggest that there is a correlation between localization, urbanization and total factor
productivity of firms in the Punjab. However, the relationship varies by sectors,
necessarily pointing industrial policy towards sector-specific recommendations.
