콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Trade

Print

Impact of Free Trade Agreement(FTA) on trade patterns of goods between Pakistan and China

Related Document
Frame of Image he degree of
MASTER OF PUBLIC POLICY IN ECONOMIC DEVELOPMENT
2013 Professor Yoo, Jungho
ABSTRACT IMPACT OF FREE TRADE AGREEMENT (FTA) ON TRADE PATTERNS OF GOODS BETWEEN PAKISTAN AND CHINA By Ehsan, SANA Pakistan and China share long lasting cordial relationship. To extend this relationship a free trade agreement (FTA) was signed between the countries in 2006. The purpose of my study is to examine the impact of this FTA on patterns of goods traded especially from the point of view of Pakistan. Due to data limitations only observations from 2003-2010 have been included in the analysis which has been carried out using Before-After FTA analysis, Revealed Comparative Advantage (RCA) and Gravity Model. Before-After analysis reveals that the trade patterns have improved generally (Pakistan exports as well as imports from China have increased) but the trade deficit of Pakistan has also increased; the RCA analysis shows that there is a difference in goods traded by both countries in world markets and bilaterally except the top ranked products. The gravity model suggests that Pak-China FTA does not appear to affect the bilateral trade flow one way or another. The positive and statistically significant China’s GDP could have positive influence on Pakistan’s exports to China because bigger the China’s GDP, the greater China’s imports from Pakistan, and bigger its capacity to absorb imports. On the other hand, Pakistan’s GDP does not have much influence on its exports to China. Therefore


Full Text
Title Impact of Free Trade Agreement(FTA) on trade patterns of goods between Pakistan and China
Similar Titles
Material Type Reports
Author(English)

Ehsan, Sana

Publisher

[Seoul]:KDI School of Public Policy and Management

Date 2013
Pages 54
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Trade
Holding KDI School of Public Policy and Management

Abstract

Pakistan and China share long lasting cordial relationship. To extend this relationship a free trade agreement (FTA) was signed between the countries in 2006. The purpose of my study is to examine the impact of this FTA on patterns of goods traded especially from the point of view of Pakistan. Due to data limitations only observations from 2003-2010 have been included in the analysis which has been carried out using Before-After FTA analysis, Revealed Comparative Advantage (RCA) and Gravity Model. Before-After analysis reveals that the trade patterns have improved generally (Pakistan exports as well as imports from China have increased) but the trade deficit of Pakistan has also increased; the RCA analysis shows that there is a difference in goods traded by both countries in world markets and bilaterally except the top ranked products. The gravity model suggests that Pak-China FTA does not appear to affect the bilateral trade flow one way or another. The positive and statistically significant China’s GDP could have positive influence on Pakistan’s exports to China because bigger the China’s GDP, the greater China’s imports from Pakistan, and bigger its capacity to absorb imports. On the other hand, Pakistan’s GDP does not have much influence on its exports to China. Therefore in present conditions it is Pakistan which benefits more from the bilateral trade because Pakistan’s exports to China are positively correlated with China’s GDP which is growing faster than Pakistan’s GDP.

User Note

Thesis(Master)