Analysing the Terms of Trade Effect for Pakistan

Nishat Fatima
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Nishat Fatima: Pakistan Institute of Development Economics, Islamabad.

No 2010:59, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: The study investigates the impact of changes in terms of trade in Pakistan on its income and consumption potentials, by employing two measures of terms of trade, namely, barter terms of trade and income terms of trade. The study examines Pakistan’s terms of trade behaviour using time series data from 1990- 2008, and works out the losses the country had to bear owing to deterioration in its terms of trade. Paper finds that worsening of terms of trade has a negative impact on economic growth of Pakistan, as it ultimately reduces gross domestic product.

Keywords: Terms of Trade; Commodity Terms of Trade; Income Terms of Trade; GDP; Pakistan (search for similar items in EconPapers)
JEL-codes: E21 F10 F13 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2010
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Citations: View citations in EconPapers (8)

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