The Opportunities and Pitfalls of Pakistan’s Trade with China and Other Neighbors
Naved Hamid and
Sarah Hayat ()
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Sarah Hayat: Research Assistant, Centre for Research in Economics and Business at the Lahore School of Economics, Pakistan.
Lahore Journal of Economics, 2012, vol. 17, issue Special Edition, 271-292
Abstract:
While Pakistani trade with India could give a boost to Pakistan’s economy, there are other neighbors with whom trade could be equally important. We look at this aspect of regional trade and show that promoting trade with the rest of Pakistan’s neighbors could have a significant positive impact on the country’s growth. We show that Pakistan’s trade with these neighbors has grown rapidly over the last 10 years and at present they constitute the largest market for Pakistani exports. We also explain how these exports are not only important in terms of absolute value, they have also contributed to the development of new export products. The overall impact on Pakistan’s economy could well be to raise the trend growth rate for the next decade or so by 2 to 3 percentage points above the historical trend growth rate of 5 percent per annum.
Keywords: Exports; regional trade; Pakistan; China; UAE; Central Asia; Afghanistan (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)
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Persistent link: https://EconPapers.repec.org/RePEc:lje:journl:v:17:y:2012:i:sp:p:271-292
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