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Pakistan's agricultural exports, determinants and its potential: an application of stochastic frontier gravity model

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  • Rao Muhammad Atif
  • Liu Haiyun
  • Haider Mahmood

Abstract

The most important and imperative objective of the developing nations is rapid economic growth and exports are generally considered as an engine for economic growth. Being an agro-based economy, agriculture exports play pivotal role not only in economic growth but also in socioeconomic uplifting. This study aims at evaluating main determinants of agricultural exports of Pakistan by applying stochastic frontier gravity model over the period of 1995–2014 for a sample of 63 countries. In addition, the study also analyzes whether there is any untapped export potential between Pakistan and the trading partners in agriculture sector. The results confirm the consistency of gravity model for agriculture exports of Pakistan. Likewise, the estimates also point out that bilateral exchange as well as tariff rates also effect agriculture exports. The study has also incorporated the effect of common border, common culture, colonial history and preferential trading agreements by including their respective dummies. The study confirms the significance of each factor, except common language, with their respective magnitude. Moreover, technical efficiency estimates reveal that Pakistan has great export potential with neighboring, Middle Eastern and European countries.

Suggested Citation

  • Rao Muhammad Atif & Liu Haiyun & Haider Mahmood, 2017. "Pakistan's agricultural exports, determinants and its potential: an application of stochastic frontier gravity model," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(3), pages 257-276, April.
    • Handle: RePEc:taf:jitecd:v:26:y:2017:i:3:p:257-276
    DOI: 10.1080/09638199.2016.1243724
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    Citations

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    Cited by:

    1. Kiril I. Tochkov, 2018. "Trade Potential and Trade Integration of the Russian Far East: A Regional Perspective," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 21-38.
    2. Duc Hong Vo & Anh The Vo & Zhaoyong Zhang, 2019. "Exchange Rate Volatility and Disaggregated Manufacturing Exports: Evidence from an Emerging Country," JRFM, MDPI, vol. 12(1), pages 1-25, January.
    3. Djontu, Bruno Legrand, 2022. "Déterminants et efficacité des exportations camerounaises des produits agricoles : Une application du modèle de gravité à la frontière stochastique [Determinants and potential of Cameroon’s agricul," MPRA Paper 113959, University Library of Munich, Germany, revised 01 Aug 2022.
    4. Javed, Asif, 2019. "Pakistan’s Agriculture Trade with South Asia," MPRA Paper 95729, University Library of Munich, Germany.
    5. Zaid Ashiq Khan & Mansoor Ahmed Koondhar & Noshaba Aziz & Uzair Ali & Liu Tianjun, 2020. "Revisiting the effects of relevant factors on Pakistan's agricultural products export," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(12), pages 527-541.
    6. Redwanur Rahman & Saleh Shahriar & Sokvibol Kea, 2019. "Determinants of Exports: A Gravity Model Analysis of the Bangladeshi Textile and Clothing Industries," FIIB Business Review, , vol. 8(3), pages 229-244, September.
    7. Nazir Muhammad Abdullahi & Xuexi Huo & Qiangqiang Zhang & Aminah Bolanle Azeez, 2021. "Determinants and Potential of Agri-Food Trade Using the Stochastic Frontier Gravity Model: Empirical Evidence From Nigeria," SAGE Open, , vol. 11(4), pages 21582440211, December.
    8. Mukesh Kumar & Azeema Begam & Nargis, 2020. "The Impact of Currency Depreciation on Exports of SAARC Countries," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(1), pages 16-29, March.
    9. Deepak Kumar & Shubham Kumar & Keya Sengupta & Tapas K. Giri, 2022. "Examining the Role of Policy and Cultural Determinants on Sectoral Export Competitiveness: Evidences from India," Global Business Review, International Management Institute, vol. 23(3), pages 694-709, June.
    10. Mahmood, Haider & Alkhateeb, Tarek Tawfik Yousef & Maalel, Nabil, 2017. "Egyptian Intra Agriculture Trade with Common Market for Eastern and Southern Africa Trading Partners: A Gravity Model," MPRA Paper 109145, University Library of Munich, Germany.
    11. Hakimah Nur Ahmad Hamidi & Norlin Khalid & Zulkefly Abdul Karim & Muhamad Rias K. V. Zainuddin, 2022. "Technical Efficiency and Export Potential of the World Palm Oil Market," Agriculture, MDPI, vol. 12(11), pages 1-16, November.
    12. Weibing Chen & Bian Wu & Qing Guo, 2024. "The efficiency of China's export trade with Africa and its influence mechanism," African Development Review, African Development Bank, vol. 36(2), pages 187-200, June.
    13. Rao Muhammad Atif & Haider Mahmood & Liu Haiyun & Haiou Mao, 2019. "Determinants and efficiency of Pakistan’s chemical products’ exports: An application of stochastic frontier gravity model," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-15, May.
    14. Khanal, Ghanashyam & Zhang, Daowei & Prestemon, Jeffrey P., 2024. "A gravity model analysis of trade regulations on wood products exports: Evidence from Cameroon, Ghana, and the republic of Congo," Forest Policy and Economics, Elsevier, vol. 166(C).

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