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

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Author Info
Zulfiqar Bashir (Department of Economics, Macquarie University, Australia.)
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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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
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:pid:journl:v:42:y:2003:i:4:p:941-960

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  1. 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.
  2. Krueger, Anne O, 1997. "Trade Policy and Economic Development: How We Learn," American Economic Review, American Economic Association, vol. 87(1), pages 1-22, March. [Downloadable!] (restricted)
  3. David Greenaway & David Sapsford, . "What does Liberalisation do for Exports and Growth?," Working Papers ec4/94, Department of Economics, University of Lancaster.
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  4. 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. [Downloadable!] (restricted)
  5. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June. [Downloadable!] (restricted)
  6. Anne O. Krueger, 1997. "Trade Policy and Economic Development: How We Learn," NBER Working Papers 5896, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
  8. Devadoss, Stephen & Lanclos, Kent, 2000. "Trade in Imperfectly Competitive Industries: The Role of Market Size and Consumer Preferences," Applied Economics, Taylor and Francis Journals, vol. 32(9), pages 1189-1200, July. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. Al-Marhubi, Fahim, 2000. "Export Diversification and Growth: An Empirical Investigation," Applied Economics Letters, Taylor and Francis Journals, vol. 7(9), pages 559-62, September. [Downloadable!] (restricted)
  11. Johansen, Soren & Juselius, Katarina, 1994. "Identification of the long-run and the short-run structure an application to the ISLM model," Journal of Econometrics, Elsevier, vol. 63(1), pages 7-36, July. [Downloadable!] (restricted)
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