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The Imperfect Substitutes Model in South Asia

Author

Listed:
  • Sasidaran Gopalan
  • Ammar A. Malik
  • Kenneth A. Reinert

Abstract

In large number of circumstances, trade policy modellers turn to partial equilibrium modelling in an imperfect substitutes framework. This article develops a formal representation of this imperfect substitutes model and applies it to trade liberalization within the negative list between Pakistan and India following Pakistan’s decision to grant most favoured nation (MFN) status to India. It provides estimates for ranges of output and welfare effects for a number of sectors of interest. It sets these results within the history of Pakistan–India trade and the political economy of the negative list.

Suggested Citation

  • Sasidaran Gopalan & Ammar A. Malik & Kenneth A. Reinert, 2013. "The Imperfect Substitutes Model in South Asia," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(2), pages 211-230, September.
  • Handle: RePEc:sae:soueco:v:14:y:2013:i:2:p:211-230
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    Citations

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    Cited by:

    1. Vaqar Ahmed & Samavia Batool, 2017. "India-Pakistan Trade: Perspectives from the Automobile Sector in Pakistan," Working Papers id:12263, eSocialSciences.
    2. Naheed Memon & Faiza Rehman & Fazal Rabbi, 2014. "Should Pakistan Liberalize Trade With India Against the Backdrop of the FTA with China? A Comparative Advantage Analysis for the Manufacturing Sector," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(Special E), pages 327-348, September.

    More about this item

    Keywords

    Imperfect substitutes model; Pakistan; India; trade; liberalization;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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