Determinants of the performance of tractor industry in Pakistan – A case study of Millat Tractor

Tractor Industry in Pakistan is an important part of Pakistan Automobile Industry. It contributes substantially along with the entire automobile industry to the economic development of the country in terms of GDP, Employment, and Foreign Direct Investment. The study aims at finding out the macroeconomic variables which significantly influence the performance of tractor industry in Pakistan. For this purpose, Millat Tractor has been selected as a sample. The impact of seven macroeconomic variables has been examined on the five dependent variables of the firm. The regression analysis reveals that all of the dependent variables are significantly influenced by one or more macroeconomic variables except Return on Equity. Consumption Rate is the most frequent predictor which influences three dependent variables. Hence it is concluded that the performance of Tractors Industry is significantly, though partially, influenced by macroeconomic factors.