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Assessing the impact of fta: a case study of pakistan- malaysia fta


  • mahmood, Hamid mahmood
  • gul, Sidra gul


The paper focuses on understanding the dynamics of pre and post Free Trade Agreement (FTA) agreement between Pakistan and Malaysia. It makes use of descriptive analysis and SMART model for simulating the impact of trade liberalization and its impact on the local and ASEAN economy. The impact is measured for top five export product of Pakistan and separate case of automobile sector of Pakistan understanding the changes in export, revenue, trade creation and diversion and welfare impact. The results from the descriptive analysis suggests trade in favor of Malaysia while simulation shows increase in export, welfare and trade diversion with automobile sector showing insignificant impact on welfare.

Suggested Citation

  • mahmood, Hamid mahmood & gul, Sidra gul, 2014. "Assessing the impact of fta: a case study of pakistan- malaysia fta," MPRA Paper 55802, University Library of Munich, Germany, revised 12 Jun 2014.
  • Handle: RePEc:pra:mprapa:55802

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    References listed on IDEAS

    1. Sang‐Wook (Stanley) Cho & Julian P. Diaz, 2011. "The Welfare Impact Of Trade Liberalization," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 379-397, April.
    2. Kimberly A. Clausing, 2001. "Trade creation and trade diversion in the Canada - United States Free Trade Agreement," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 677-696, August.
    3. Vaqar Ahmed & Cathal O'Donoghue, 2010. "External Shocks in a Small Open Economy: A CGE - Microsimulation Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(1), pages 45-90, Jan-Jun.
    4. Greg Mastel, 2004. "The Rise of the Free Trade Agreement," Challenge, Taylor & Francis Journals, vol. 47(4), pages 41-61.
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    Cited by:

    1. Shah Mehmood WAGAN, 2015. "Export boost of textile industry of Pakistan by availing EU’s GSP Plus," Journal of Economics Library, KSP Journals, vol. 2(1), pages 18-27, March.
    2. Wagan, Shah Mehmood, 2015. "Export boost of Textile Industry of Pakistan by availing EU’s GSP Plus," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 18-27.

    More about this item


    Simulation; trade creation; trade diversion; export revenue and welfare;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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