A Strategic Framework of Liberalising Trade in Services for Pakistan.

Ahmed, Gulzar

doi:10.30541/v50i4iipp.733-770

Cited by 3 publications

(2 citation statements)

References 31 publications

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“…In international trade of services by liberalization and globalization, a natural monopoly (telecommunications, energy) was removed. It also increased the economic growth, both in developed and in developing countries [Gulzar (2011)].…”

Section: Review Of Literaturementioning

confidence: 99%

Assessing the Impact of Liberalization of Trade Related Services on Services Growth in Pakistan

Mahfooz¹,

Mahmood²,

Noureen³

2021

NJSSH

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The services sector has offered sound support to Pakistan’s economic development. It has emerged as one of the fastest growing and highest contributing sectors of the economy. Through the use of Fully Modified OLS Estimation Technique, this study has provided evidence that liberalization of the two key sub-sectors (telecom and banking) of services of Pakistan has played an important role in development of these sectors. The task is achieved by preparing liberalization index for the two sectors. The econometric evidence reveals that results are robust and in accordance with the theory. Relationships are found to be relatively strong for the telecom sector and less strong for the financial sector. The research also shed light on the constraints that the country has to face in the liberalization process of these sectors. Rapid liberalization of the telecom sector has attracted substantial amount of investment, both local and foreign, and has created saturation in the industry, which has hampered further investment opportunities. This resulted in substantial decline of investment in this sector. But due to fast changing technologies, there is a possibility of it picking up again. By the increased liberalization of the telecom and banking services, the GDP of these sectors also increased. Hence, the full scale liberalization in the telecom sector evidently plays important role in growing the share of the services to economy’s GDP. Other economic indicators have also played an important role in defining the development of these sectors. Finally, a set of policy measures has been suggested to make the sector more effective and useful in accelerating the growth process.

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Section: Review Of Literaturementioning

confidence: 99%

Assessing the Impact of Liberalization of Trade Related Services on Services Growth in Pakistan

Mahfooz¹,

Mahmood²,

Noureen³

2021

NJSSH

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“…Since services sector contributes more than 50 percent to national income accounts, this trend calls for a change in the terms of PTA agreement to foster services firms' internationalization in Pakistan. A study by Gulzar (2011) to enhance share of services in…”

Section: Internationalization Outcomes (Intensity Dimension)mentioning

confidence: 99%

Impact of preferential trade agreements (PTAs) on firms’ degree of internationalization

Siddiqui

Zafarullah

Latif

et al. 2014

South Asian Journal of Global Business Research

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Purpose – The purpose of this paper is to postulate the impact of preferential trade agreements (PTAs) on internationalization strategies of member countries’ firms. The study also aims to triangulate the proposed model using empirical data from PTA partner economies. Design/methodology/approach – The mixed methods research design is used for the purpose of inquiry as suggested by Creswell. The inductive reasoning based on critical literature review and grounded theory methodology is used to postulate the model. Explanatory strength of the model is triangulated using empirical longitudinal trade data of Pakistan with her bilateral PTA partners, i.e. Malaysia, Mauritius, Iran, Sri Lanka and China. Internationalization indices are adapted following the Ietto-Gillies and London (2009) and Petri (1994) to measure the intensity and geographical diversification dimensions of internationalization. Country-level trade statistics are used as a proxy of firm-level data to explain the international expansion of home firms resulting from PTAs. Findings – Empirical results confirm a strong and long-term impact of PTAs on the intensity and extensity dimensions of internationalization over post-agreement period in Pakistan and member economies. Gravity index depicts greater concentration of Pakistan's trade in FTA markets and thereby confirms the influence of PTAs on international market selection. Analysis at sectoral level depicts a contraction in services trade whereas expansion in the manufacturing firms’ export growth to member economies. Originality/value – The paper extends the theory of internationalization by identifying PTAs as exogenous variable influencing internationalization strategies of member countries’ firms in a developing South Asian context. Coupled with findings from empirical data, the study identifies PTAs as a new strategic trade policy tool available to policy makers for promoting and influencing the home firms’ internationalization strategies.

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The Impact of GATS on the Insurance Sector: Empirical Evidence from Pakistan

Rahman¹,

Khan

2022

Asia-Pacific Journal of Risk and Insurance

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This study aims to analyse the effects of the General Agreement on Trade in Services (GATS) on the investment activities of the Pakistani insurance sector. First, we analyse the impact of GATS on the overall and company-wise return on investment of the insurance sector of Pakistan. In a panel data setting, the traditional fixed and random effect models are unsuitable for dealing with the possible issues, including endogeneity, unobserved heterogeneity, profit persistency, and the correlation between lagged dependent variables and independent variables. Therefore, we apply the Generalised Method of Moments (GMM) system estimator to the panel data from 1984 to 2018. In the Arellano-Bond framework, the estimated results indicate that the overall investment returns of the Pakistani insurance sector have increased after the GATS membership. However, company-wise analysis reveals mixed evidence. The average returns of IGI Insurance Limited and EFU General Insurance Limited have increased significantly after the GATS membership. These results support one of our empirical conjectures that a rising tide lifts some boats more than it does others. Then, we apply Markowitz’s Portfolio Theory to estimate the portfolio returns and the associated risk using the financial statements data from 1984 to 2018. The estimates of portfolio analysis reveal that the portfolio returns of the Pakistani insurance sector improve by 6.70 percentage points after the membership. However, the associated portfolio risk also increases by 11.13 percentage points, 7.40 times higher than the Pre-GATS risk. Despite the better returns, there is an intensive increase in investment volatility after GATS membership. This study provides a valuable reference for insurance managers and the Ministry of Finance and Securities & Exchange Commission of Pakistan to control and improve the insurance sector’s performance in Pakistan.

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A Strategic Framework of Liberalising Trade in Services for Pakistan.

Cited by 3 publications

References 31 publications

Assessing the Impact of Liberalization of Trade Related Services on Services Growth in Pakistan

Assessing the Impact of Liberalization of Trade Related Services on Services Growth in Pakistan

Impact of preferential trade agreements (PTAs) on firms’ degree of internationalization

The Impact of GATS on the Insurance Sector: Empirical Evidence from Pakistan

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