Pakistan’s Global Trade Potential with Selected Trading Partners: A Gravity Model Approach Using Static and Dynamic Panel Data

Authors

  • Muhammad Siddique National College of Business Administration & Economics, Pakistan
  • Muhammad Abdul Quddus National College of Business Administration & Economics, Pakistan
  • Asim Iqbal University of Education, Pakistan

DOI:

https://doi.org/10.52131/joe.2022.0401.0058

Keywords:

Pakistan’s Global Trade Potential , Gravity Approach, Bilateral Trade, Static & Dynamic Models

Abstract

This research study employs a gravity model to explore Pakistan's trade potential from 2000 to 2020. China, United Arab Emirates (UAE), Saudi Arabia (KSA), Kuwait, United States (USA), Malaysia, Japan, India, Singapore, Afghanistan, Iran, Spain, Germany, United Kingdom (UK) and Belgium are among our significant trading partners. The study uses both static and dynamic econometric techniques to capture the trade potential of Pakistan. The findings from both methodologies are comparable, indicating that economic size and distance have a significant effect on bilateral trade. Furthermore, throughout the research period, political globalization is determined to be considerable and has an important influence on the economic masses. These factors support the theoretical model(s) that Pakistan and Pakistan’s trading partners with economic integration, political globalization, and distance all depict a significant impact on trade relations.

Author Biographies

Muhammad Siddique, National College of Business Administration & Economics, Pakistan

Ph.D. Scholar

Muhammad Abdul Quddus, National College of Business Administration & Economics, Pakistan

Professor

Asim Iqbal, University of Education, Pakistan

Professor, Department of Economics & Business Administration

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Published

2022-03-12

How to Cite

Siddique, M., Quddus, M. A. ., & Iqbal, A. (2022). Pakistan’s Global Trade Potential with Selected Trading Partners: A Gravity Model Approach Using Static and Dynamic Panel Data. IRASD Journal of Economics, 4(1), 25–37. https://doi.org/10.52131/joe.2022.0401.0058

Issue

Section

Articles