Pak-SAARC Intra-industry Trade
AbstractThis paper analyses country-specific and industry-specific determinants of intra-industry trade (IIT) between Pakistan and other SAARC countries using panel data techniques. This paper also disentangles total IIT into horizontal and vertical IIT. Vertical IIT is further divided into high-quality and low quality IIT. This paper finds that country-specific variables are more important in explaining IIT relative to industry-specific variables. Decomposition of IIT shows that in the SAARC region Pakistan’s IIT is mostly comprised of the vertical IIT and to a lesser extent is horizontal IIT. The paper offers specific policy recommendations for the promotion of IIT in the SAARC region.
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Bibliographic InfoPaper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 2013:93.
Length: 30 pages
Date of creation: 2013
Date of revision:
IIT; Horizontal IIT; Vertical IIT;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
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