Import Determinants and Potential Markets of Pakistan: An Application of PPML Gravity Model

Suadat Wani and Mir M. Afzal ()
Additional contact information
Mir M. Afzal: Centre of Centre Asian Studies, University of Kashmir Hazartbal Srinagar, India

Studia Universitatis „Vasile Goldis” Arad – Economics Series, 2023, vol. 33, issue 1, 57-73

Abstract: The present study examines import determinants of Pakistan with the top 28 trade partners from 2002 to 2018. To achieve this objective, the augmented gravity model of trade has been applied by incorporating both time-variant and time-invariant variables. In addition, the analysis quantifies the impact of free trade agreements (FTA) signed by Pakistan with China and other trade partners. The results show that along with income and distance, FTA, common language, and common border plays an essential role in imports of Pakistan with its main trade partners. In addition to identifying trade determinants, the impact of adherence to a particular trade agreement was also examined. The results indicate that FTA signed by Pakistan with China and other trade partners has created trade opportunities for participating countries, highlighting the importance of trade liberalization for the long-run development of the country.

Keywords: Import flow; trade agreements; gravity model; panel data; PPML (search for similar items in EconPapers)
JEL-codes: C5 F0 F1 F69 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.2478/sues-2023-0003 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:suvges:v:33:y:2023:i:1:p:57-73:n:4

DOI: 10.2478/sues-2023-0003

Access Statistics for this article

Studia Universitatis „Vasile Goldis” Arad – Economics Series is currently edited by Florin Cornel Dumiter

More articles in Studia Universitatis „Vasile Goldis” Arad – Economics Series from Sciendo
Bibliographic data for series maintained by Peter Golla ().