scholarly journals Pakistan-India Trade Potential and Issues

2009 ◽  
Vol 14 (Special Edition) ◽  
pp. 171-201 ◽  
Author(s):  
Zareen F. Naqvi
Keyword(s):  
Bilateral Trade ◽  
Import Substitution ◽  
Trade Agreement ◽  
Growth Strategies ◽  
Most Favored Nation ◽  
Trade Relations ◽  
Political Relations ◽  
Dialogue Process ◽  
Trade Potential ◽  
Low Levels

Pakistan and India are the two largest economies in South Asia with very low levels of bilateral trade. This has been the result of border disputes and political tensions, but also of inward-looking import-substitution growth strategies. Trade (including official and unofficial) between the two countries stood at around US$ 2.5-2.6 billion in 2007/08 but it could potentially be as much as US$ 5-10 billion or two to four times its current levels. The Composite Dialogue Process (CDP) has led to substantial improvements in political relations over the last 5 years and trade relations have shown positive outcomes as well. This paper recommends that the process be strengthened further by restarting the stalled CDP, Pakistan granting most favored nation (MFN) status to India, continuing to reduce impediments to trade and trade logistics, and perhaps even considering the possibility of a free trade agreement (FTA) with India.

scholarly journals Should Pakistan Liberalize Trade With India Against the Backdrop of the FTA with China? A Comparative Advantage Analysis for the Manufacturing Sector

2014 ◽  
Vol 19 (Special Edition) ◽  
pp. 327-348 ◽  
Author(s):  
Naheed Memon ◽  
Faiza Rehman ◽  
Fazal Rabbi
Keyword(s):  
Free Trade ◽  
Comparative Advantage ◽  
Bilateral Trade ◽  
Manufacturing Sector ◽  
Trade Agreement ◽  
Industrial Sector ◽  
Most Favored Nation ◽  
Global Competitiveness ◽  
Trade Relations ◽  
The Impact

Pakistan and India have not yet normalized trade relations and gained the full benefits of bilateral trade despite significant developments to this end since 2011. Pakistan has yet to reciprocate the most-favored-nation status granted by India. This study investigates the benefits of trade liberalization between the two countries by studying the global competitiveness of Pakistan’s industrial sector from a policy perspective. We construct a revealed comparative advantage index for manufacturing products (HS 2-digit level) for Pakistan, India, and China for the period 2003–12, and then identify the changing patterns of comparative advantage for Pakistan. We find that 18 industries should be protected upon liberalizing trade with India. These industries are termed ‘vulnerable’ as they have moved from either borderline competitiveness to becoming uncompetitive or vice versa. Additionally, the excessive concessions granted to China in its free trade agreement with Pakistan and the resistance to opening up trade with India may have resulted in inefficient trade, i.e., imports from a less competitive partner and exports to a less lucrative market. We aim to establish a direction for further research to determine the ex ante impact of trade with India on the economy via a change in the production levels of these vulnerable industries, given the impact of free trade with China and the availability of Chinese substitutes.

The Effect of Membership in the European Monetary Union on Trade Between Member Countries (An Empirical Study)

2006 ◽  
Author(s):  
Ihor Soroka
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
Bilateral Trade ◽  
Trade Agreement ◽  
Monetary Integration ◽  
European Monetary ◽  
Trade Relations ◽  
Euro Adoption ◽  
Short Period ◽  
Short Run

The question of whether or not to adopt the euro is a very important one, not only for the 13 European Union members that do not share the same currency, but also for future EU candidates. Current literature on the effect of the euro on trade is scarce since the European Monetary Union (EMU) was officially created in 1999, and up until recently there has not been enough data to analyze this issue. This paper aims to estimate the effect of the euro on trade between member countries using the standard gravity model of trade. Using data from current 25 EU members over the period from 1997 to 2004, I show that higher trade volumes between EMU members cannot be attributed to the adoption of the euro. I find evidence that the euro adoption has had a short-run effect on bilateral trade and that this effect is eliminated over a short period of time. My findings suggest that members of the EMU trade on average from 8.8% to 47% more compared to non-members depending on the type of regression used, while members of the Free Trade Agreement trade 61.3% more. The effect of the euro on trade is eliminated as soon as I control for country-pair specific effects that include the FTA effect as well as history of trade relations between two countries. I conclude that the adoption of the euro should be seen as a final step in the European economic and monetary integration for countries that already benefit from relatively high volumes of bilateral trade. Full text availale at: https://doi.org/10.22215/rera.v2i1.166

scholarly journals The Effect of Membership in the European Monetary Union on Trade Between Member Countries (An Empirical Study)

2006 ◽  
Vol 2 (1) ◽  
Author(s):  
Ihor Soroka
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
Bilateral Trade ◽  
Trade Agreement ◽  
Monetary Integration ◽  
European Monetary ◽  
Trade Relations ◽  
Euro Adoption ◽  
Short Period ◽  
Short Run

The question of whether or not to adopt the euro is a very important one, not only for the 13 European Union members that do not share the same currency, but also for future EU candidates. Current literature on the effect of the euro on trade is scarce since the European Monetary Union (EMU) was officially created in 1999, and up until recently there has not been enough data to analyze this issue. This paper aims to estimate the effect of the euro on trade between member countries using the standard gravity model of trade. Using data from current 25 EU members over the period from 1997 to 2004, I show that higher trade volumes between EMU members cannot be attributed to the adoption of the euro. I find evidence that the euro adoption has had a short-run effect on bilateral trade and that this effect is eliminated over a short period of time. My findings suggest that members of the EMU trade on average from 8.8% to 47% more compared to non-members depending on the type of regression used, while members of the Free Trade Agreement trade 61.3% more. The effect of the euro on trade is eliminated as soon as I control for country-pair specific effects that include the FTA effect as well as history of trade relations between two countries. I conclude that the adoption of the euro should be seen as a final step in the European economic and monetary integration for countries that already benefit from relatively high volumes of bilateral trade.

scholarly journals Regional Integration and Trade in Agrifood Products: Evidence from the East African Community

2015 ◽  
Vol 11 (3) ◽  
pp. 212-246
Author(s):  
Francis Ejones
Keyword(s):  
Regional Integration ◽  
Bilateral Trade ◽  
Estimation Method ◽  
Trade Agreement ◽  
Trade Integration ◽  
East African ◽  
East African Community ◽  
Trade Relations ◽  
Extended Gravity ◽  
The Impact

This study examines the postulation that trade liberalization (regional integration) policies of LDCs normally undermine their presumed impact. The study is based on the experience of EAC trade agreement. It adopts the extended gravity model, to analyze the impact of this regional integration on food item. The model includes 168 countries and is estimated with panel data over the period 1988 – 2009. The Poisson estimation method took into account unobserved trade data characteristics of the bilateral trade relations. The results show that regional trade integration increased exports, normally at the expense of exports and welfare of non-members, and these exports were more reflective of food exports growth. The same has not been true for intra-bloc exports of food although the sector experienced an increase in exports resulting from the implementation of a trade agreement. The intra-bloc results are consistent with the structural rigidities of the exporting EAC Countries.    

Trends and Patterns of India’s Trade with Six EU Countries

2015 ◽  
Vol 11 (1) ◽  
pp. 39-60
Author(s):  
SANDEEP KAUR BHATIA ◽  
Amandeep Kaur
Keyword(s):  
Comparative Advantage ◽  
Bilateral Trade ◽  
Debt Crisis ◽  
Trade Agreement ◽  
Total Trade ◽  
Eu Countries ◽  
Trade Relations ◽  
Six Nations ◽  
Average Share ◽  
Trade Competitiveness

India and European Union trade relations go back to 1960s. Both sides started their bilateral trade relations after their first summit which, was held in 2000 and after that India-EU has gone through various rounds of summits and negotiations for improving the bilateral trade ties. As a result, Free Trade Agreement was agreed upon between them in 2007 but it is still not fully implemented. EU is India’s largest trading partner which has accounted 14.8 percent in its total trade in 2011. The study has taken up six nations of EU namely Belgium, France, Germany, Italy, Netherlands and UK as   India has a large average share of trade with these countries during 1996-2011. The study strives to find out the trade trends of India with these six EU countries namely Belgium, France, Germany, Italy, Netherlands and UK. The study  is an attempt to find out the trade competitiveness and patterns of India with these countries by using various indices like Revealed Comparative Advantage Index (RCA), Revealed Symmetric Comparative Advantage Index (RSCA) and Intra Industry Trade Index (IIT).  The study finds out that  European debt crisis have vigorously affected Indian pattern of trade with these six countries.   

The Atypical Fashion of the Us-China ‘Phase 1’-Deal: Context, Content and Perspectives

2020 ◽  
Vol 23 (2) ◽  
pp. 347-370
Author(s):  
Caroline Glöckle ◽  
Aike Würdemann
Keyword(s):  
Bilateral Trade ◽  
Phase 1 ◽  
Trade Agreement ◽  
Trade Relations ◽  
Trade Law ◽  
Great Achievement ◽  
Bilateral Trade Agreement ◽  
The Us ◽  
Trade War ◽  
Chinese Trade

In January 2020, the US and China finally concluded a bilateral trade agreement amidst an ongoing trade war. From the US side, the US-China ‘phase 1’-deal was hailed as a great achievement. The paper critically examines whether and to what extent the US-China ‘phase 1’-deal can keep up with its promises. In the course of the analysis, the paper finds that the trade deal will neither place US-Chinese trade relations on a new footing, nor does it incentivise China to fundamentally change its economic model. Instead, one may argue that the ‘phase 1’-deal has a harming effect on the multilateral idea of trade law as of today.

scholarly journals The Prospects for Indo-Pakistan Trade

2012 ◽  
Vol 17 (Special Edition) ◽  
pp. 293-313 ◽  
Author(s):  
Hafiz A. Pasha ◽  
Muhammad Imran
Keyword(s):  
South Asian ◽  
Free Trade Agreement ◽  
Bilateral Trade ◽  
Trade Agreement ◽  
Tariff Reduction ◽  
Final Phase ◽  
Most Favored Nation ◽  
Nontariff Barriers ◽  
Positive List ◽  
The Impact

This article analyzes the volume and pattern of India–Pakistan trade given the extent of trade complementarity between the two countries and, in the presence of a restricted positive list of imports from India, the tariff regime and nontariff barriers in the two countries. The study also assesses the impact on bilateral trade of granting most-favored nation status to India, the removal of some of the impediments to trade, and the implementation of the final phase of import tariff reduction under the South Asian Free Trade Agreement. Finally, the article highlights emerging opportunities and possible threats to the process of trade normalization between the two countries.

scholarly journals An analysis of trade cooperation: Central region in China and ASEAN

PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0261270
Author(s):  
Roni Bhowmik ◽  
Yuhua Zhu ◽  
Kuo Gao
Keyword(s):  
Economic Development ◽  
Central Region ◽  
Bilateral Trade ◽  
The Philippines ◽  
Trade Integration ◽  
Chinese Market ◽  
Positive Role ◽  
Trade Relations ◽  
Trade Potential ◽  
Asean Countries

China-ASEAN are the two huge markets in trade world, they can bring out greater dynamism from within their economies and contribute to regional economic development. This study explores the present situation on the trade between the Central region of China and ASEAN through empirical assessment and try to find the potential effects and trade flows between them. Firstly, we analysis the trade integration index, HM index, explicit comparative advantage index, and trade complementarity index. Finally, we use the gravity model of international trade and data on 2006–2018. The bilateral trade relations between the central region and ASEAN are getting closer, but the central region has not yet become the major trade area of ASEAN countries in the Chinese market. The bilateral economic development level plays a positive role in promoting the export trade between the Central region and ASEAN, while the bilateral distance plays a negative role in difficulty. The empirical results show that trade potential between the Central region and Indonesia and the Philippines is huge, and there is still opportunity for the development of the trade potential with Thailand. The trade prospective with Malaysia, Singapore and Vietnam is limited, and new approaches need to be developed to achieve further trade cooperation.

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