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Pakistan’s Global Trade Potential with Selected Trading Partners: A Gravity Model Approach Using Static and Dynamic Panel Data

Author

Listed:
  • Muhammad Siddique

    (Ph.D. Scholar, National College of Business Administration & Economics, Pakistan)

  • Muhammad Abdul Quddus

    (Professor, National College of Business Administration & Economics, Pakistan)

  • Asim Iqbal

    (Professor, Department of Economics & Business Administration, University of Education, Pakistan)

Abstract

This research study employs a gravity model to explore Pakistan's trade potential from 2000 to 2020. China, United Arab Emirates (UAE), Saudi Arabia (KSA), Kuwait, United States (USA), Malaysia, Japan, India, Singapore, Afghanistan, Iran, Spain, Germany, United Kingdom (UK) and Belgium are among our significant trading partners. The study uses both static and dynamic econometric techniques to capture the trade potential of Pakistan. The findings from both methodologies are comparable, indicating that economic size and distance have a significant effect on bilateral trade. Furthermore, throughout the research period, political globalization is determined to be considerable and has an important influence on the economic masses. These factors support the theoretical model(s) that Pakistan and Pakistan’s trading partners with economic integration, political globalization, and distance all depict a significant impact on trade relations.

Suggested Citation

  • Muhammad Siddique & Muhammad Abdul Quddus & Asim Iqbal, 2022. "Pakistan’s Global Trade Potential with Selected Trading Partners: A Gravity Model Approach Using Static and Dynamic Panel Data," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(1), pages 25-37, March.
    • Handle: RePEc:ani:irdjoe:v:4:y:2022:i:1:p:25-37
    DOI: 10.52131/joe.2022.0401.0058
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    References listed on IDEAS

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    Cited by:

    1. Bakari, Sayef, 2023. "The nexus between domestic investment and economic growth in MENA countries; Does unemployment matter?," MPRA Paper 118349, University Library of Munich, Germany.
    2. Ritu SHEKHAWAT & C.R. BISHNOI, 2024. "India’s global trade potential. A panel gravity model approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(638), S), pages 75-94, Spring.

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