Pakistan's agricultural exports, determinants and its potential: an application of stochastic frontier gravity model

Atif, Rao Muhammad; Liu, Haiyun; Mahmood, Haider

doi:10.1080/09638199.2016.1243724

Cited by 64 publications

(56 citation statements)

References 22 publications

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“…Further, tariff rate of importing partners obstructs export flows and it is another addition to exports’ cost. Atif et al [29] find that higher tariff rates hinder exports’ flows. Therefore, we also regress the bilateral tariff rates on chemical products’ exports of Pakistan.…”

Section: Model Methodology and Datamentioning

confidence: 99%

“…Therefore, they suggest to adopt latest technologies in the service sector’s exports to improve the exports’ potential with developed world. In case of Pakistan, Atif et al [29] apply SFGM to analyze the determinants of agriculture exports of Pakistan with her 63 trading partners. Apart from traditional gravity variables, they also incorporate bilateral exchange rates, tariff rates, PTA, common border and colonial links.…”

Section: Literature Reviewmentioning

confidence: 99%

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Determinants and efficiency of Pakistan’s chemical products’ exports: An application of stochastic frontier gravity model

et al. 2019

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The estimation of efficiency of industry-specific exports is very important to find exports’ gap and to frame exports promotion policy for targeted industry. This study attempts to investigate the main determinants of chemical products’ exports of Pakistan with 62 trading partners by applying Stochastic Frontier Analysis (SFA) on an augmented gravity model for a period 1995–2015. The results corroborate that chemical products’ exports follow gravity patterns. This study finds a negative and significant impact of import tariff on exports of chemical products while the positive impact of devaluation has been observed. Further, the estimations also take into account the impact of Preferential Trade Agreements (PTA), colonial links, common language, political disputes and contiguity by incorporating dummy variable for each variable and the expected positive effects are found except an insignificant effect of Contiguity. Further, the negative impact of political disputes is observed. The exports’ efficiency analyses reveal that Pakistan’s chemical exports are well below the optimal level and there exists a huge untapped exports’ potential with its neighboring, Middle Eastern and European countries.

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Section: Model Methodology and Datamentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Determinants and efficiency of Pakistan’s chemical products’ exports: An application of stochastic frontier gravity model

et al. 2019

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“…The recent works of Anderson and Yotov (2017); Yotov et al (2016); Helpman (2011); Bernhofen (2013) and Van Bergeijk and Brakman (2010) are the glaring instances of the growing theoretical literature on the gravity model of trade. The model has been widely used in many empirical fields; such as, the international migration (Beine, Bertoli, and Moraga 2016) , tourism (Santana-Gallego, Ledesma-Rodríguez, and Pérez-Rodríguez 2016), health care (Teow et al 2018), agriculture and livestocks (Atif, Haiyun, andMahmood 2017, Luo andTian 2017), international trade (Batra 2006, Edmonds, La Croix, and Li 2008, Irshad et al 2018, Erdey and Pöstényi 2017, Huot and Kakinaka 2007, Kahouli 2016, Rahman 2010, Narayan and Nguyen 2016, Gashi, Hisarciklilar, and Pugh 2016, Zhou, Li, and Lei 2019, Shahriar, Qian, and Kea 2019, Martínez-Zarzoso and Johannsen 2017, Kohl 2019 , and investment (Pericoli, Pierucci, and Ventura 2014, Chang 2014). The gravity model has, in this way, become a useful tool of international trade analysis.…”

Section: Introductionmentioning

confidence: 99%

The gravity model of trade

Shahriar

Kea

et al. 2019

RIC

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Purpose. The purpose of this study is to trace the theoretical developments of the gravity model of trade. The key question is: what are the dominant features of the development of the gravity trade model? Methodology. This research is conducted by employing a number of methods that include the historical, descriptive and analytical methods. The main contribution of this paper is to trace the historical and theoretical development phases of the gravity model. Findings. This study is a novel attempt in terms of the identification of the four distinctive phases of the development of the gravity model. This work would, therefore, expand the existing literature on the gravity model. We argue that the development of the gravity model is the outcome of many research efforts. A large body of literature has given the model a solid theoretical foundation. But there is no consensus about the proper econometric estimation methods of the model. The gravity model is significant both historically and analytically. It is a useful tool for the analysis of international trade. It has become a popular research device used by the researchers and policy makers around the world. The gravity is regarded as one of the most successful models in the literature of international economics. Originality. The original contributions of this paper lie in streamlining the consistent historical development of the gravity model over a longer period of time-frame, ranging from 1885 to 2018. Limitations and Implications. This work is theoretical aspects of the trade gravity model. Future researchers could overcome the limitations by combining the theoretical and empirical studies in a paper. This paper can help the future researchers in dealing with the broad body of literature of gravity model. Acknowledement. This study was supported by the National Natural Science Foundation of China (grants No.71673223 & 71473197), and a PhD scholarship from the China Scholarship Council (CSC). The first author would like to thank the CSC for the financial support. He also acknowledges the invaluable research advice and guidance received from Dr. Yoto V. Yotov, professor at the School of Economics of the Lebow College of Business at Drexel University, Philadelphia, USA. The authors are highly grateful to the anonymous reviewers, managing editor, and the editor-in chief for their kind help and critical comments on the earlier drafts of the paper. However, the authors are responsible for the contents and limitations of the study. They declared no conflict of interests.

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“…The main occupation and source of income of the rural population in the country is agriculture. Even though, it is the main sector of the Pakistan economy and creates employment opportunities (ATIF et al, 2016). The last three and half decade's sectoral share of Pakistan GDP is presented in table 1.…”

Section: Introductionmentioning

confidence: 99%

Testing long-run relationship between agricultural gross domestic product and fruits production: evidence from Pakistan

2018

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This paper analyses the long-run relationship between agricultural gross domestic product (GDP) and fruits production of Pakistan’s economy over a period of 1961-2015 by employing Johansen and autoregressive distributed lag (ARDL) modern econometric technique. Three fruits were selected namely mango, apple and peach in this study. Augmented Dickey-Fuller and Phillips-Perron tests were used to check the data stationarity and conclude that the series are integrated of order one. The Johansen approach was applied to check the joint evolution of all the variables for co-integration. The Johansen test suggests that a long-run co-integration exists between agricultural GDP and fruits production. Results of the ARDL model (Bound test) detect the existence of long-run relationship between agricultural GDP and fruits production. The coefficient of the short-run form of ARDL model reveals that all the fruits have a positive impact on agricultural GDP. Moreover, the coefficients of the long-run form of ARDL model have apositive and significant influence on agricultural GDP of Pakistan. These results suggest that a 1% increase in mango, apple and peach production will increase agricultural GDP by 0.06%, 0.03% and 0.03% respectively. Finally, forecast error variance decomposition and impulse response function results depict that mango, apple and peach production significantly contributes to agricultural GDP in the case of Pakistan.

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Pakistan's agricultural exports, determinants and its potential: an application of stochastic frontier gravity model

Cited by 64 publications

References 22 publications

Determinants and efficiency of Pakistan’s chemical products’ exports: An application of stochastic frontier gravity model

Determinants and efficiency of Pakistan’s chemical products’ exports: An application of stochastic frontier gravity model

The gravity model of trade

Testing long-run relationship between agricultural gross domestic product and fruits production: evidence from Pakistan

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