Trade agreements between developing countries: a case study of Pakistan - Sri Lanka free trade agreement
AbstractThis paper assesses the pre and post Free Trade Agreement (FTA) pattern in bilateral trade between Pakistan and Sri Lanka. Besides the usual direction of trade analysis we also use general and partial equilibrium approaches in order to evaluate the true potential of this FTA. Our results reveal an increase in welfare and efficiency for both countries. However export basket has not changed much since pre-FTA period. This calls for creating awareness about the FTA and putting in place a consultative mechanism with trade community that can identify the manner in which both countries can accrue maximum benefit from the free movement of tradable goods. Similar suggestions follow in our perception survey carried out for this study.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29209.
Date of creation: Nov 2010
Date of revision:
Free Trade Agreement; General Equilibrium;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
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