IJRSS Volume 4, Issue 3 ISSN: 2249-2496 _________________________________________________________ A Quarterly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage, India as well as in Cabell’s Directories of Publishing Opportunities, U.S.A. International Journal of Research in Social Sciences http://www.ijmra.us 627 August 2014 DETERMINANTS OF THE PERFORMANCE OF TRACTOR INDUSTRY IN PAKISTAN – A CASE STUDY OF MILLAT TRACTOR Muhammad Aqil * Dr. Farooq Aziz ** ABSTRACT 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. Key words: Tractor Industry, Macroeconomic Variables, Performance, GNI, Unemployment * Ph D Scholar, Hamdard Institute of Education and Social Sciences, Hamdard University Karachi, Pakistan ** Research Supervisor, Hamdard Institute of Education and Social Sciences, Hamdard University Karachi, Pakistan