The Impact of Trade Cost on Exports of Pakistan: An Empirical Modelling
Journal Title: Research Journal Social Sciences (Online) - Year 2017, Vol 6, Issue 1
Abstract
This study takes into the account effect on exports going from Pakistan by key trading partners , tariff imposed by exporting partners, population within and outside Pakistan, distance with trading partner and exchange rate. This impact is taken into consideration based on the modelling done by [Tibergen (1962); Bergstrand (1985) and Deadroff (1995)]. Through examining results for data taken from 2005-17, it is found that with population, GDP and tariff there is positive relation of exports going from Pakistan. While with exchange rate and distance there is negative relationship confirming that greater the distance lower will be the exports from Pakistan and also there is problem of exchange rate uncertainty. Based on the findings it is recommended there is need for consistency in export destinations which are not flexible in case of Pakistan. It is also recommended that Pakistan should look at internal cost of doing business with primary focus on improving compliance cost and also there is need to abolish protectionist policies which are depleting out capacity to compete for Pakistani enterprises.
Authors and Affiliations
SYED SHUJAAT AHMED, HAFSA HINA
Keywords
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