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The Opportunities and Pitfalls of Pakistan’s Trade with China and Other Neighbors

  • Naved Hamid

    ()

    (Director of the Centre for Research in Economics and Business at the Lahore School of Economics, Pakistan.)

  • Sarah Hayat

    ()

    (Research Assistant, Centre for Research in Economics and Business at the Lahore School of Economics, Pakistan.)

While Pakistani trade with India could give a boost to Pakistan’s economy, there are other neighbors with whom trade could be equally important. We look at this aspect of regional trade and show that promoting trade with the rest of Pakistan’s neighbors could have a significant positive impact on the country’s growth. We show that Pakistan’s trade with these neighbors has grown rapidly over the last 10 years and at present they constitute the largest market for Pakistani exports. We also explain how these exports are not only important in terms of absolute value, they have also contributed to the development of new export products. The overall impact on Pakistan’s economy could well be to raise the trend growth rate for the next decade or so by 2 to 3 percentage points above the historical trend growth rate of 5 percent per annum.

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Article provided by Department of Economics, The Lahore School of Economics in its journal Lahore Journal of Economics.

Volume (Year): 17 (2012)
Issue (Month): Special Edition (September)
Pages: 271-292

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Handle: RePEc:lje:journl:v:17:y:2012:i:sp:p:271-292
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Web page: http://www.lahoreschoolofeconomics.edu.pk/EconomicsJournal/LJEIntro.aspx

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  1. Kumagai, Satoru, 2008. "A journey through the secret history of the Flying Geese Model," IDE Discussion Papers 158, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  2. Barry Eichengreen & Yeongseop Rhee & Hui Tong, 2007. "China and the Exports of Other Asian Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(2), pages 201-226, July.
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