Assessing the impact of fta: a case study of pakistan- malaysia fta

Hamid mahmood Mahmood and Sidra gul Gul

MPRA Paper from University Library of Munich, Germany

Abstract: The paper focuses on understanding the dynamics of pre and post Free Trade Agreement (FTA) agreement between Pakistan and Malaysia. It makes use of descriptive analysis and SMART model for simulating the impact of trade liberalization and its impact on the local and ASEAN economy. The impact is measured for top five export product of Pakistan and separate case of automobile sector of Pakistan understanding the changes in export, revenue, trade creation and diversion and welfare impact. The results from the descriptive analysis suggests trade in favor of Malaysia while simulation shows increase in export, welfare and trade diversion with automobile sector showing insignificant impact on welfare.

Keywords: Simulation; trade creation; trade diversion; export revenue and welfare (search for similar items in EconPapers)
JEL-codes: F10 F15 F17 (search for similar items in EconPapers)
Date: 2014-05-30, Revised 2014-06-12
New Economics Papers: this item is included in nep-cmp, nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Global Journal of Economics Bilateral FTA case study and trade liberalization.Vol. 3(2014): pp. 5-21

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:55802

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