Shah Masood , Nabila Khurshid , Maqsood Haider , Jamila Khurshid , Arif Masih Khokhar
{"title":"Trade potential of Pakistan with the South Asian Countries: A gravity model approach","authors":"Shah Masood , Nabila Khurshid , Maqsood Haider , Jamila Khurshid , Arif Masih Khokhar","doi":"10.1016/j.apmrv.2022.02.001","DOIUrl":null,"url":null,"abstract":"<div><p>The current study investigates the trade potential of Pakistan with South Asian countries using an augmented Gravity Model approach. The model used latest ESCAP dataset with base year 2016. Results show that simple average tariff imposition and GDP of partner countries positively impact the trade value of Pakistan, whereas simple average tariff imposition bilaterally harms the trade volume of the reporting country. Statistically, a one percent change in the tariffs rate will decrease 0.3 percent in Pakistan's total trade. Moreover, a one percent increase in the GDP of the partner countries will increase Pakistan's total trade by 0.5 percent. We also found that common language, landlocked, and distance significantly impact Pakistan's total trade. This research recommends South Asian countries to revise the tariff rates and other non-Tariff barriers to boost trade and connectivity for the better future of the inhabitants of South Asian countries.</p></div>","PeriodicalId":46001,"journal":{"name":"Asia Pacific Management Review","volume":"28 1","pages":"Pages 45-51"},"PeriodicalIF":5.5000,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asia Pacific Management Review","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1029313222000070","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
The current study investigates the trade potential of Pakistan with South Asian countries using an augmented Gravity Model approach. The model used latest ESCAP dataset with base year 2016. Results show that simple average tariff imposition and GDP of partner countries positively impact the trade value of Pakistan, whereas simple average tariff imposition bilaterally harms the trade volume of the reporting country. Statistically, a one percent change in the tariffs rate will decrease 0.3 percent in Pakistan's total trade. Moreover, a one percent increase in the GDP of the partner countries will increase Pakistan's total trade by 0.5 percent. We also found that common language, landlocked, and distance significantly impact Pakistan's total trade. This research recommends South Asian countries to revise the tariff rates and other non-Tariff barriers to boost trade and connectivity for the better future of the inhabitants of South Asian countries.
期刊介绍:
Asia Pacific Management Review (APMR), peer-reviewed and published quarterly, pursues to publish original and high quality research articles and notes that contribute to build empirical and theoretical understanding for concerning strategy and management aspects in business and activities. Meanwhile, we also seek to publish short communications and opinions addressing issues of current concern to managers in regards to within and between the Asia-Pacific region. The covered domains but not limited to, such as accounting, finance, marketing, decision analysis and operation management, human resource management, information management, international business management, logistic and supply chain management, quantitative and research methods, strategic and business management, and tourism management, are suitable for publication in the APMR.