On Expanding Bilateral Trade Between Pakistan And India: An Econometric Approach

Syed Nawab Haider Naqvi
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Syed Nawab Haider Naqvi: Pakistan Institute of Development Economics

No 1986:1, PIDE Research Report from Pakistan Institute of Development Economics

Abstract: Regional trade expansion has been recognized as promoter of economic growth in developing countries. This is true even if regional grouping leads to some trade diversion. This is because, in view of the rising protectionist sentiments in the developed countries the developing countries are finding it increasingly difficult to expand trade with them. Hence the need for mutual economic co-operation among the develop¬ ing countries, focusing mainly on expanding intra-regional trade. An attempt has been made in this paper to provide an analytical framework for studying trade relations between Pakistan and India and for exploring the possibilities of changing the existing situation through a conscious policy action. Notwithstanding severe data problems, the quantitative approach developed here enables us to look back on the past with dissatisfaction and towards the future with reasonable hope. For whatever reasons, trade between Pakistan and India has remained very small despite an immense potential for promoting bilateral trade.

Pages: 24
Date: 1986
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