Lahore School of Economics

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Analysing Pakistan's Trade Opportunity with Turkey

Asha Gul, Lahore School of Economics

Pakistan and Turkey have long hailed a brotherly relation but lately the relationship between the two countries has been witnessing a new height in lieu of the increasing cooperation between the two governments in diversified sectors of economy and a proposed Preferential Trade Agreement. This paper explores the trade relationship between Pakistan and Turkey, in an attempt to analyze the potential gains for Pakistan under the proposed Preferential Trade Agreement. The paper evaluates the existence of potential trade opportunities using descriptive statistics and trade indices. More specifically, the paper computes a Trade Complementarity Index, Export Similarity Index and the Intra industry Index. The findings of the paper suggest that there lies an opportunity for Pakistan to exploit in its trading relationship with Turkey as Pakistan has been enjoying a trade surplus which can be expanded further, and strong export similarities and intra industry trade indicate the presence of greater opportunities for firm synergies between the two countries which can greatly facilitate Pakistan in achieving greater value addition and broader market base for its exports. Therefore, the government of Pakistan should lobby more strongly for the proposed Preferential Trade Agreement (which may later evolve into a Free Trade Agreement) and intelligently leverage this trade agreement in such a way that Pakistan can maximize its potential opportunities.

About the presenter:

Ms Asha Gul is currently enrolled as a PhD Economics candidate at the Lahore School of Economics. She is also a Teaching Fellow at the Department of Economics, Lahore School of Economics and a Research Fellow at the Center for Research in Economics and Business (CREB). She has a degree with distinction in M.S. Economics and a BSc (Honors) Double Majors in Economics and Finance from the Lahore School of Economics. Her research interests encompass migration issues, social mobilization, international trade and growth theory. She is currently involved in a Randomized Experiment about incentivizing development in Third-Tier Organizations/ Local Support Organizations across Pakistan, along with researchers from the University of Oxford. Ms Gul has also presented her work at the 28th Annual General Meeting and Conference of the Pakistan Society of Development Economics (2012), and at the Centre for the Study of African Economies (CSAE), Department of Economics, University of Oxford (2013).

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posted by S A J Shirazi @ 3/27/2014 04:00:00 PM,

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