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The Effective Rate of Protection in an Input-Output Framework

Author

Listed:
  • Muhammad Zeshan

    (Pakistan Institute of Development Economics)

Abstract

This research work quantifies the changes in effective protection rates in Pakistan during the last decade, 2011-20, using various inputs and outputs. Based on its results, it supports a more flexible trade policy in Pakistan. Furthermore, it identifies the sectors with strong and weak long-run productive capacities and highlights the role of trade barriers in these industries. A key concern is the decreasing productive capacity of the textile and leather sectors, where the textile industry has the largest share in total exports from Pakistan. Hence, there is a dire need to invest more in research and development activities in such industries. Finally, the country needs to increase its range of export items and export destinations with more favourable terms of trade.

Suggested Citation

  • Muhammad Zeshan, 2022. "The Effective Rate of Protection in an Input-Output Framework," PIDE-Working Papers 2022:16, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2022:16
    as

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    File URL: https://pide.org.pk/wp-content/uploads/wp-0229-the-effective-rate-of-protection-in-an-input-output-framework.pdf
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    References listed on IDEAS

    as
    1. Joseph S Shapiro, 2021. "The Environmental Bias of Trade Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(2), pages 831-886.
    2. Muhammad Zeshan, 2021. "Double-hit scenario of Covid-19 and global value chains," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 8559-8572, June.
    3. Muhammad Zeshan & Muhammad Nasir, 2019. "Pakistan Input-Output Table 2010-11," PIDE-Working Papers 2019:162, Pakistan Institute of Development Economics.
    4. Angel Aguiar & Maksym Chepeliev & Erwin L. Corong & Robert McDougall & Dominique van der Mensbrugghe, 2019. "The GTAP Data Base: Version 10," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 4(1), pages 1-27, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Effective Rate of Protection; Industry; Input Output Table; Pakistan; Trade;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F6 - International Economics - - Economic Impacts of Globalization
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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