The Role of Global Economic Growth in Pakistani Agri-Food Exports

Zahoor ul Haq, Mohamed Gheblawi and Safdar Muhammad
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Mohamed Gheblawi: Department of Agribusiness and Consumer Sciences, United Arab Emirates University, UAE
Safdar Muhammad: Department of Agribusiness and Consumer Sciences, United Arab Emirates, University, UAE

The Pakistan Development Review, 2011, vol. 50, issue 3, 245-256

Abstract: This analysis uses least squares and Heckman maximum likelihood estimation procedures with fixed effects to explore the role of economic growth in 36 developed and developing economies—categorised as low-, lower-middle-, upper-middle-, and highincome—in explaining their agri-food import of 29 products from Pakistan during 1990 to 2000. We reject the hypothesis that the economic growth of these economies does not influence Pakistani agri-food product exports. However, the estimated income elasticities are statistically elastic only for lower-middle income countries, suggesting that their expenditure on Pakistani agri-food exports will increase disproportionately as their economies grow. Hence, lower-middle-income countries provide good export opportunities for Pakistan’s agri-food products.

Keywords: Economic Growth; Agri-food Trade; Income Elasticities; Developing Countries (search for similar items in EconPapers)
JEL-codes: F14 Q17 (search for similar items in EconPapers)
Date: 2011
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