Should Pakistan Liberalize Trade With India Against the Backdrop of the FTA with China? A Comparative Advantage Analysis for the Manufacturing Sector
May 19, 2015
In an extremely important and relevant article published in the Lahore Journal of Economics, Naheed Memon, Faiza Rehman and Fazal Rabbi looked at the implications of trade liberalization with China and India. The article was titled, “Should Pakistan Liberalize Trade With India Against the Backdrop of the FTA with China? A Comparative Advantage Analysis for the Manufacturing Sector,” and in the article the authors looked at the impact of the liberalized trade regime between Pakistan and China and the proposed liberalization in trade between Pakistan and India.
The authors investigated the benefits of trade liberalization between the two countries by studying the global competitiveness of Pakistan’s industrial sector from a policy perspective. To do this, the authors looked at construct a revealed comparative advantage index for manufacturing products (HS 2-digit level) for Pakistan, India, and China for the period 2003–12, and then identified the changing patterns of comparative advantage for Pakistan.
Additionally, the authors find that excessive concessions granted to China in its free trade agreement with Pakistan and the resistance to opening up trade with India may have resulted in inefficient trade, i.e. imports from a less competitive partner and exports to a less lucrative market.
Labels: Lahore Journal of Economics, Manufacturing Exports, Pakistan-India Trade, Research, Revealed Comparative Advantage, Trade Liberalization
posted by S A J Shirazi @ 5/19/2015 10:22:00 AM,
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