The Effective Rate of Protection in an Input-Output Framework

Muhammad Zeshan

No 2022:16, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: This research work quantifies the changes in effective protection rates in Pakistan during the last decade, 2011-20, using various inputs and outputs. Based on its results, it supports a more flexible trade policy in Pakistan. Furthermore, it identifies the sectors with strong and weak long-run productive capacities and highlights the role of trade barriers in these industries. A key concern is the decreasing productive capacity of the textile and leather sectors, where the textile industry has the largest share in total exports from Pakistan. Hence, there is a dire need to invest more in research and development activities in such industries. Finally, the country needs to increase its range of export items and export destinations with more favourable terms of trade.

Keywords: Effective Rate of Protection; Industry; Input Output Table; Pakistan; Trade (search for similar items in EconPapers)
JEL-codes: C67 D57 F6 L5 R15 (search for similar items in EconPapers)
Pages: 16
Date: 2022
New Economics Papers: this item is included in nep-hme and nep-int
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