A CGE Analysis of Pakistan-Turkey Free Trade Agreement

Ashfaque Ali

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the possible impacts of Pakistan-Turkey free trade agreement (Pak-Turk FTA) on various sectors of the economy in the two countries under four different possible FTA scenarios by using computable general equilibrium model GTAP. Global Trade Analysis Project (GTAP) model has been extensively used in FTAs and other Trade related studies to evaluate the economy-wide potential impact of economic policy reforms. Current study uses the GTAP database7 which includes; 57 tradable commodities and 113 regions across the world. Our findings suggest that; Turkey is more beneficial from Free Trade Agreement as compared to Pakistan .Overall impact of trade liberalization is favorable for both economies, but liberalization of protected sectors may prove to be unfavorable for the economy in case of Pakistan. And there is a huge potential for bilateral trade in textile and chemical sector.

Keywords: Computable General Equilibrium (CGE) Analysis; Free Trade Agreement (FTA); Pakistan; and Turkey. (search for similar items in EconPapers)
JEL-codes: F10 F14 F17 (search for similar items in EconPapers)
Date: 2017-04-14
New Economics Papers: this item is included in nep-ara, nep-cmp, nep-cwa and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:78318

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