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Analysing the Terms of Trade Effect for Pakistan

  • Nishat Fatima

    (Pakistan Institute of Development Economics, Islamabad.)

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    The study investigates the impact of changes in terms of trade in Pakistan on its income and consumption potentials, by employing two measures of terms of trade, namely, barter terms of trade and income terms of trade. The study examines Pakistan’s terms of trade behaviour using time series data from 1990- 2008, and works out the losses the country had to bear owing to deterioration in its terms of trade. Paper finds that worsening of terms of trade has a negative impact on economic growth of Pakistan, as it ultimately reduces gross domestic product.

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    File Function: First Version, 2010
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    Paper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 2010:59.

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    Length: 15 pages
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:pid:wpaper:2010:59
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