[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pid/wpaper/202315.html
   My bibliography  Save this paper

Trade, Industry and Competition in Pakistan

Author

Listed:
  • Muhammad Zeshan

    (Pakistan Institute of Development Economics, Islamabad)

Abstract
We believe that high tariff rates have increased the overall cost of production in Pakistan, and the domestic prices of many products have become much higher than the international market prices. Reducing import tariffs will reduce not only the domestic prices but will also increase the export competitiveness of the country because many imported products are complementary intermediate inputs in various exporting industries. Further, it will allow the country to take advantage of the augmented technology in the new imported products, which will be helpful to add new products to its export portfolio. Hence, we eliminate the import tariffs of the 10 major import items of Pakistan such as cooking oil from Indonesia; textiles, chemicals, basic metals, machinery and electrical equipment from China; mining, coke and petroleum from the United Arab Emirates; and mining and chemicals from the Kingdom of Saudi Arabia.

Suggested Citation

  • Muhammad Zeshan, 2023. "Trade, Industry and Competition in Pakistan," PIDE-Working Papers 2023:15, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2023:15
    as

    Download full text from publisher

    File URL: https://file.pide.org.pk/pdfpideresearch/wp-23-15-trade-industry-and-competition-in-pakistan.pdf
    File Function: First Version, 2023
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joseph S Shapiro, 2021. "The Environmental Bias of Trade Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(2), pages 831-886.
    2. Cirera, Xavier & Marin, Anabel & Markwald, Ricardo, 2015. "Explaining export diversification through firm innovation decisions: The case of Brazil," Research Policy, Elsevier, vol. 44(10), pages 1962-1973.
    3. Wei Tian & Miaojie Yu, 2019. "Input trade liberalization and import switching: Evidence from Chinese firms," Review of International Economics, Wiley Blackwell, vol. 27(4), pages 1002-1020, September.
    4. Amir Lebdioui, 2019. "Chile's Export Diversification since 1960: A Free Market Miracle or Mirage?," Development and Change, International Institute of Social Studies, vol. 50(6), pages 1624-1663, November.
    5. Jamil Nasir, 2020. "The Tariff Tripod of Pakistan: Protection, Export Promotion, and Revenue Generation," PIDE-Working Papers 2020:6, Pakistan Institute of Development Economics.
    6. Muhammad Asif & Amjad Amin & Naila Nazir & Kashif Saeed & Sajjad Jan, 2022. "Role of tariffs, imports substitution and investment efficiency in economic growth of Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2215-2232, August.
    7. Jamil Nasir, 2020. "The Tariff Tripod of Pakistan: Protection, Export Promotion, and Revenue Generation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(3), pages 517-551.
    8. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    9. Dayna Zaclicever & Andrea Pellandra, 2018. "Imported inputs, technology spillovers and productivity: firm-level evidence from Uruguay," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 725-743, November.
    10. Muhammad Aamir Khan & Naseeb Zada & Kakali Mukhopadhyay, 2018. "Economic implications of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on Pakistan: a CGE approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-20, December.
    11. Muhammad Zeshan & Muhammad Nasir, 2019. "Pakistan Input-Output Table 2010-11," PIDE-Working Papers 2019:162, Pakistan Institute of Development Economics.
    12. Akbas, Yusuf Ekrem & Sancar, Canan, 2021. "The impact of export dynamics on trade balance in emerging and developed countries: An evaluation with middle income trap perspective," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 357-375.
    13. Carlos A. Carrasco & Edgar Demetrio Tovar-García, 2021. "Trade and growth in developing countries: the role of export composition, import composition and export diversification," Economic Change and Restructuring, Springer, vol. 54(4), pages 919-941, November.
    14. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    15. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paolo Epifani & Gino Gancia, 2008. "The Skill Bias of World Trade," Economic Journal, Royal Economic Society, vol. 118(530), pages 927-960, July.
    2. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
    3. Anwar, Sajid, 2005. "Variable labour supply, specialisation-based external economies, and capital inflow," International Review of Economics & Finance, Elsevier, vol. 14(4), pages 427-437.
    4. Suga, Nobuhito, 2007. "A monopolistic-competition model of international trade with external economies of scale," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 77-91, February.
    5. Beverly Lapham & Hiroyuki Kasahara, 2005. "Import Protection as Export Destruction," 2005 Meeting Papers 528, Society for Economic Dynamics.
    6. Harald Fadinger & Pablo Fleiss, 2011. "Trade and Sectoral Productivity," Economic Journal, Royal Economic Society, vol. 121(555), pages 958-989, September.
    7. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    8. James Markusen, 2023. "Incorporating Theory-Consistent Endogenous Markups into Applied General-Equilibrium Models," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 8(2), pages 60-99, December.
    9. Patricia Augier & Olivier Cadot & Marion Dovis, 2013. "Imports and TFP at the firm level: the role of absorptive capacity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(3), pages 956-981, August.
    10. Usman Qadir, 2020. "Analysing the National Tariff Policy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(1), pages 143-149.
    11. Harald Badinger & Peter Egger, 2010. "Horizontal vs. Vertical Interdependence in Multinational Activity," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(6), pages 744-768, December.
    12. repec:hal:spmain:info:hdl:2441/1f59r6ssre9eiqb2rso9ui50m2 is not listed on IDEAS
    13. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
    14. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2013. "Trade Diversification, Income, And Growth: What Do We Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 790-812, September.
    15. Kamei, Keita, 2014. "Pro-competitive effect, division of labor, and firm productivity," Economics Letters, Elsevier, vol. 124(1), pages 132-135.
    16. repec:jes:wpaper:y:2012:v:4:p:736-746 is not listed on IDEAS
    17. Liviu-George Maha & Andreea-Nicoleta Donici & Andreea Maha, 2012. "Limits And Difficulties In Implementing The Strategic Trade Policy," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4(4), pages 736-746, December.
    18. Maria Bas & Vanessa Strauss-Kahn, 2014. "Does importing more inputs raise exports? Firm-level evidence from France," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(2), pages 241-275, May.
    19. Haaparanta, Pertti, 1998. "Regional concentration, trade, and welfare," Regional Science and Urban Economics, Elsevier, vol. 28(4), pages 445-463, July.
    20. Zhang, Jingjing, 2020. "International production fragmentation, trade in intermediate goods and environment," Economic Modelling, Elsevier, vol. 87(C), pages 1-7.
    21. Costinot, Arnaud & Rodríguez-Clare, Andrés, 2014. "Trade Theory with Numbers: Quantifying the Consequences of Globalization," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 197-261, Elsevier.
    22. Heiland, Inga & Kohler, Wilhelm, 2022. "Heterogeneous workers, trade, and migration," European Economic Review, Elsevier, vol. 144(C).

    More about this item

    Keywords

    Import Tariffs; Industry; Trade; CGE; Pakistan;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:wpaper:2023:15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.