Abasyn Journal of Social Sciences. Vol.9 No.1

An Analysis of Pakistan’s Exports using Gravity Model

Dr. Javed Iqbal

Assistant Professor, Department of Economics, Abdul Wali Khan University Mardan

Pakistan exports have been showing a declining trend. Pakistan exports have not been only concentrated in trading in few goods but also exporting to a few countries. This study uses a gravity  model of trade and panel data estimation technique to explain the export trends of Pakistan. Gross domestic product of the trading partners or economic size of a country (both GDPs and Per  capita GDPs) was found to be a statistically significant determinant of trade between the countries. Pakistan’s exports are negatively related to the distance variable. Sharing a border was not  found significant for Pakistan’s exports. Disputes over territory and terrorism related incidents with India and Afghanistan making a common border as not significantly explaining the trade. It is  suggested that the disputes may be resolved between the neighboring countries and strengthening the regional trade agreements.
Keywords: Exports, Gravity Model, Pakistan




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