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The Impacts of Economic Reforms and Trade Liberalisation on Agricultural Export Performance in Pakistan

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  • Zulfiqar Bashir

    (Department of Economics, Macquarie University, Australia.)

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    Abstract

    Economic reforms and trade liberalisation policies have been widely adopted in developing countries in recent years. Pakistan is no exception. This paper focuses on the effects of economic reform policies on the agricultural export performance. A number of studies have investigated the effects of trade liberalisation on export growth in developing countries, and have reached inconclusive results. Some studies have identified positive effects of trade liberalisation on export performance [Krueger (1997); Bleaney (1999); and Ahmed (2002)], others confirmed an insignificant or even a negative relationship [Greenaway, et al. (1994); Jenkins (1996) and Greenaway, et al. (2002)]. There are number of reasons for conflicting conclusions including different researchers have used different indicators for liberalisation and different methods to analyse the effect; difference in the extent of liberalisation studies; most studies have analysed scenarios rather than evaluating the effects, and so on. The present study analyses agricultural trade policy of Pakistan and accesses the impact of trade liberalisation on agricultural export performance, especially diversification, competitiveness, and openness. The relative importance of domestic supply related factors such as tariffs, quotas, etc. compared with external demand factors in affecting agricultural export expansion is analysed with respect to (i) relative agricultural export growth, (ii) changes in market shares of (traditional) agricultural exports, and (iii) changes in the export commodity composition.

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    Bibliographic Info

    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 42 (2003)
    Issue (Month): 4 ()
    Pages: 941-960

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    Handle: RePEc:pid:journl:v:42:y:2003:i:4:p:941-960

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    1. Srinivasan, P. V. & Jha, Shikha, 2001. "Liberalized trade and domestic price stability. The case of rice and wheat in India," Journal of Development Economics, Elsevier, vol. 65(2), pages 417-441, August.
    2. Athukorala, Prema-chandra, 1991. "An Analysis of Demand and Supply Factors in Agricultural Exports from Developing Asian Countries," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145500, Australian Agricultural and Resource Economics Society.
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    8. Fahim Al-Marhubi, 2000. "Export diversification and growth: an empirical investigation," Applied Economics Letters, Taylor & Francis Journals, vol. 7(9), pages 559-562.
    9. Greenaway, David & Morgan, Wyn & Wright, Peter, 2002. "Trade liberalisation and growth in developing countries," Journal of Development Economics, Elsevier, vol. 67(1), pages 229-244, February.
    10. Lahiri, Sajal & Nasim, Anjum & Ghani, Jawaid, 2000. "Optimal second-best tariffs on an intermediate input with particular reference to Pakistan," Journal of Development Economics, Elsevier, vol. 61(2), pages 393-416, April.
    11. Hendry, David F, 1986. "Econometric Modelling with Cointegrated Variables: An Overview," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 201-12, August.
    12. David Greenaway & David Sapsford, 1994. "What does liberalisation do for exports and growth?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(1), pages 152-174, March.
    13. Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-94, September.
    14. Pendell, Dustin L. & Schroeder, Ted C., 2004. "Spatial Market Integration In Regional Cattle Markets," 2004 Annual Meeting, June 30-July 2, 2004, Honolulu, Hawaii 36265, Western Agricultural Economics Association.
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