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Competitiveness of Pakistani rice in international market and export potential with global world: A panel gravity approach

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  • Muhammad Saqib Irshad
  • Qi Xin
  • Hamza Arshad

Abstract

Rice is an important source for foreign exchange earnings for Pakistan’s economy, keeping this fact in mind, this study is to calculate competitiveness of rice export of Pakistan in international market compared to largest exporter countries and this article is the first empirical attempt using a panel-gravity approach by employing PPML technique and to find out potential countries for Pakistani rice export to 144 countries over the period 2003–2016. The outcomes of this study revealed that as compared to other major exporters of rice in the international market, Pakistan had high competitive and comparative advantage in the exportation and production of rice. We confirm the positive relationship between rice export of Pakistan and the main components of the gravity model, GDP of Pakistan and trading partner, the difference in income, common border, and WTO membership and an inverse relationship with distance, exchange rates and trade agreement. The results for rice export potential suggest Pakistan still has plenty of rice export potential with 109 countries and as such Pakistan can possibly reduce and gain foreign exchange earnings to reduce the trade deficit by targeting these countries. So as to utilize the potential benefits of rice exports, policy makers need to reinforce the competitiveness in rice sector of Pakistan.

Suggested Citation

  • Muhammad Saqib Irshad & Qi Xin & Hamza Arshad, 2018. "Competitiveness of Pakistani rice in international market and export potential with global world: A panel gravity approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1486690-148, January.
    • Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1486690
    DOI: 10.1080/23322039.2018.1486690
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    Cited by:

    1. Timsina, Krishna P. & Culas, Richard J., 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    2. Arif Imam Suroso, 2022. "The Effect of Logistics Performance Index Indicators on Palm Oil and Palm-Based Products Export: The Case of Indonesia and Malaysia," Economies, MDPI, vol. 10(10), pages 1-15, October.
    3. Muhammad Munwar Hayat & Raheela Khatoon, 2021. "Determinants of Basmati Exports from Pakistan: A Panel Data Analysis," Journal of Economic Impact, Science Impact Publishers, vol. 3(1), pages 12-18.
    4. Krishna P. Timsina & Richard J. Culas, 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 889-919, July.
    5. 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.
    6. Arif Imam Suroso & Idqan Fahmi & Hansen Tandra & Adi Haryono, 2023. "Assessing the Effect of Internet Indicators on Agri-Food Export Competitiveness," Economies, MDPI, vol. 11(10), pages 1-16, October.

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