Pakistan’s Global Trade Potential: A Gravity Model Approach

2019 ◽  
Vol 20 (6) ◽  
pp. 1361-1371 ◽  
Author(s):  
Shujaat Abbas ◽  
Abdul Waheed
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
South Asian ◽  
Regional Integration ◽  
Positive Impact ◽  
Trade Flow ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Relative Price ◽  
Trade Potential

The international trade of Pakistan is highly concentrated on a few goods and markets. This study investigates macroeconomic behaviour of trade flow and explores potential trade markets for Pakistan using an augmented gravity model on a large panel of 47 cross-sections from 1980 to 2013. The result of standard gravity variables shows consistent findings with statistically significant t-statistics, whereas augmented variables reveal that relative price has a positive impact with lower price elasticity. The result of binary variables shows that Pakistan’s trade is more with countries having the same language, whereas lower trade is observed with bordering countries. The result of South Asian Free Trade Agreement (SAFTA) revealed ineffectiveness of regional integration on the creation of trade for Pakistan, whereas, bilateral free trade agreements (BFTAs) have created considerable trade. The finding of trade potential revealed exhausted potential with major trading partners and there is a need for greater trade diversification from exhausted to potential countries. It has higher untapped potential with Nepal, Iraq, India, Philippines and Jordan, respectively, in Asia, whereas European countries have the highest potential. The results concluded that Pakistan can diversify its trade from exhausted to potential countries through individual BFTAs and multilateral free trade agreements. South Asian countries should address their disputes and revisit SAFTA aiming to improve regional trade and growth.

India’s Trade Potential and Free Trade Agreements: A Stochastic Frontier Gravity Approach

2017 ◽  
Vol 17 (1) ◽  
pp. 20160074 ◽  
Author(s):  
Surender Kumar ◽  
Prerna Prabhakar
Keyword(s):  
Free Trade ◽  
South Asian ◽  
Stochastic Frontier ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Regulatory Quality ◽  
Trading Partners ◽  
Trade Potential ◽  
The Impact

This paper analyses the role of Free Trade Agreements in determining export and import efficiency levels in India using stochastic frontier version of gravity model. We estimate the impact of selected FTAs of India (its bilateral FTAs, FTA with ASEAN and South Asian FTA) and regulatory quality on the efficiency of exports and imports over the period of 2000–2014. The results indicate that India’s bilateral FTAs and its FTA with the ASEAN group help in improving the export and import efficiency respectively. However, the South Asian Free Trade Agreement is statistically insignificant for India’s export and import efficiency. The results also highlight importance of trading partners’ regulatory quality for enhancing the India’s trade efficiency and note that the impacts of regulatory quality are non-monotonic.

scholarly journals Who benefits of trade with China? Examining the effects of free trade agreements on trade flow with China using an adjusted gravity model

2021 ◽  
Vol 14 (3) ◽  
pp. 9-25
Author(s):  
Sigurður Guðjonsson ◽  
Inga Minelgaite ◽  
Hrafnhildur Kristinsdóttir ◽  
Jelena Stankevičienė
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Trade Flow ◽  
Free Trade Agreements ◽  
Trade Agreements

scholarly journals Trade, Climate and Energy: A New Study on Climate Action through Free Trade Agreements

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4363
Author(s):  
Christopher M. Dent
Keyword(s):  
Climate Change ◽  
Free Trade ◽  
Global Economy ◽  
International Political Economy ◽  
Positive Impact ◽  
Free Trade Agreements ◽  
Primary Source ◽  
Trade Agreements ◽  
Climate Action ◽  
Trade Partners

Efforts to tackle climate change are taking place on multiple fronts. This includes trade, an increasingly important defining feature of the global economy. In recent years, free trade agreements (FTAs) have become the primary mechanism of trade policy and diplomacy. This study examines the development of climate action measures in FTAs and discusses what difference they can make to tackling climate change. Its primary source research is based on an in-depth examination of FTAs in force up to 2020. This paper is structured around a number of research questions forming around three main inter-related areas of enquiry. Firstly, to what extent are these provisions in FTAs essentially derivative of energy’s connections with climate change, and thus part of a wider trade–climate–energy nexus? Secondly, what kinds of climate action are FTAs specifically promoting, and how effective a potential positive impact may we expect these to have? Thirdly, are certain climate action norms being promoted by trade partners in FTAs and if so, then who are the norm leaders, what is motivating them, and to what extent are they extending their influence over other trade partners? In addressing these questions, this study offers new insights and analysis regarding a potentially important emerging trend in the trade–climate–energy nexus. Its international political economy approach and latest empirical research also provide a further distinctive contribution to knowledge in this inter-disciplinary area, developing new comprehensions of the relationship between trade, climate action and energy.

scholarly journals The Endogeneity Of Association Agreements And Their Impact On Trade For Eastern Countries: Empirical Evidence For Romania

2011 ◽  
Vol 7 (1) ◽  
Author(s):  
Christophe Rault ◽  
Ana Maria Sova ◽  
Robert Sova
Keyword(s):  
European Union ◽  
Free Trade ◽  
Positive Impact ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Flows ◽  
Economic Literature ◽  
Association Agreement ◽  
European Union Countries

The main goal of regionalization is the creation of free trade areas and the guarantee for countries to accede to a widened market. Many studies dealing with the effects of regional free trade agreements on trade flows already exist in economic literature and the increase of regional agreements among nations has recently stressed the key role of regionalization. However, the effects of agreements on trade have not yet been clearly determined in those studies. Our research in this paper aims at reassessing the genuine role of associations. For this matter, we particularly study the association of Romania with European Union countries. Our econometric analysis based on qualitative choice models highlights in particular why European countries chose to conclude an association agreement with Romania, and stresses the fact that European Union countries select endogenously the conclusion of association agreements. We also find a 29% positive impact of the association agreement on Romanian export performances.

scholarly journals Free Trade Agreement between Turkey and Russian Federation and its Possible Effects to these Countries’ Trade and Taxational Reflections

2015 ◽  
Author(s):  
Raşit Gültekin ◽  
Mustafa Erkan Üyümez
Keyword(s):  
International Trade ◽  
Free Trade ◽  
Russian Federation ◽  
Regional Integration ◽  
Free Trade Agreement ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Trade Restrictions ◽  
The Impact

The last period of international trade in goods covers a process carried out with globalization and regionalization efforts. Many countries, on the one hand, take part in arrangements that are executed under the leadership by global actors and aim at removing or reducing conventional obstacles to international trade, on the other hand, participate in various and regional economic integrations to provide a more deep and comprehensive economic cooperation and to cope with the competition and trade restrictions which continually increasing due to political, commercial and economical motives. Trade relations between Turkey and Russian Federation is an important element of the two countries' multidimensional cooperation. The most effective attempt to raise the top level of the volume and quality of existing commercial relationships will be the signing and putting into practice of a comprehensive free trade agreements between the two countries that have not been done previously. The purpose of this study is to determine the potential effects of such a free trade agreements between Turkey and Russian Federation in terms of trade in goods between two countries. To this end, in this study, theoretical aspects of free trade agreements' effects and place within regional integration types will be considered the impact of the possible Turkey-Russia free trade agreement will be examined in a framework of basic provisions with customs duties that set out in free trade agreements, recent trade data and key issues related to these countries.

scholarly journals TRADE CREATION DAN TRADE DIVERSION ANTARA INDONESIA DAN NEGARA-NEGARA ASEAN-KOREA

2018 ◽  
Vol 3 (1) ◽  
pp. 64-81
Author(s):  
Tresna Ritaningsih ◽  
Dedi Budiman Hakim ◽  
Sahara Sahara
Keyword(s):  
Free Trade ◽  
Regional Integration ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Diversion ◽  
Trade Agreements ◽  
Trade Creation ◽  
Implementation Phase ◽  
Trading Partners ◽  
The Impact

Indonesia has several free trade agreements with trading partners that aimed to eliminate tariff and non tariff trade barriers. One of the free trade agreements is ASEAN-Korea FTA. Trade agreement in goods in ASEAN-Korea FTA was agreed since 2007 and now it is entering the implementation phase. The objective of this research is to determine whether the ASEAN-Korea FTA would increase the trade flows between Indonesia and ASEAN-Korea’ countries by analyzing the impact of regional integration on trade creation and trade diversion. This research is utilized balance panel data including 13 countries from 1998-2012. The empirical result shows that all Indonesia's trading sectors experienced decline because of trade diversion and trade creation does not occur. Indonesia's import trading with the non-member countries of ASEAN-Korea is 68% lower than the existing trading. Key word: trade creation, trade diversion, free trade agreement, trade in goods

Exploiting the Trade Potential from Integration: Analysing the Impact of Free Trade Agreements between ASEAN and India and China

China Report ◽  
2018 ◽  
Vol 54 (4) ◽  
pp. 442-466 ◽  
Author(s):  
Nguyen Xuan Trung ◽  
Nguyen Duc Hung ◽  
Nguyen Thi Hien
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Bilateral Trade ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Agreements ◽  
The Impact ◽  
Stochastic Frontier Estimation

In this article, we use the technique of stochastic frontier estimation for the structural gravity model to analyse Vietnam’s bilateral trade and evaluate its exploitation of trade efficiency before and after its free trade agreements (FTAs) with China and India entered into force. The results from Vietnam’s bilateral trade data between 2000 and 2015 show that the ASEAN–India Free Trade Agreement (AIFTA) has had a positive impact on Vietnam’s bilateral trade flows while we found a remarkably negative effect on Vietnam’s exports but not imports after the entry into force of the ASEAN-China Free Trade Agreement (ACFTA). In addition, Vietnam’s participation in the regional trade agreements (RTAs) and FTAs has significantly reduced the costs of trade over time, and these impacts on Vietnam’s imports are much higher than those on Vietnam's exports.

East Asia Institutionalises: China, Japan and the Vogue for Free Trade

2008 ◽  
Vol 77 (3) ◽  
pp. 301-318 ◽  
Author(s):  
Timothy Webster
Keyword(s):  
East Asia ◽  
Free Trade ◽  
Regional Integration ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Comprehensive Approach ◽  
Partner Country ◽  
The Past ◽  
China And Japan

AbstractIn the past decade East Asia has taken steps to increase regional integration. This paper examines the vogue for Free Trade Agreements (FTAs) currently raging in China and Japan. After mapping the regional links that knit East Asia together during the 1990s and 2000s, the focus then shifts to the specific trade agreements that China and Japan have signed. Both countries exhibit a particular FTA “style;” Japan has adopted a more orthodox and comprehensive approach to its treaties, while China has shown greater flexibility and gradualism when dealing with FTA partners. It is still unclear whether these efforts will lead to a region-wide FTA, or a continued crisscrossing of bilateral arrangements. In either case, China's eagerness to adapt to partner country expectations likely gives it an edge in becoming the regional hub of East Asia.

Sign in / Sign up

Export Citation Format

Share Document