Finding impact of Pakistan-China Free Trade Agreement (PCFTA) on agricultural exports of Pakistan- Gravity Model Approach

• DOI: 10.14257/ijunesst.2017.10.8.08
• Publication Date: 2017-10-17T06:26:32Z
• Authors: Majid Lateef; Tong GuangJi; Muhammad Abdullah; Mazhir Nadeem Ishaq; Zeeshan Ahmad; Muhammad Usman Riaz
• Keywords: Free trade agreement

China and Pakistan have years long history of friendly relations.Two countries decided to get fruit these relations for mutual economic development cooperation in terms trade by signing Pakistan-China free agreement (PCFTA) 2006.Pakistan normally exports different agricultural products while imports high-tech products, chemical household appliances.Agriculture sector is backbone Pakistan's economy a major source employment export earnings.Exports are highly concentrated like sugar, cotton, rice fruits.This study contains ex post facto analysis on using theoretically justified gravity model.Panel data set containing disaggregated 110 partners the period dating from 2001 2014 analyzed Poisson Pseudo Maximum-Likelihood (PPML) version model Stata software 14.0.Data all were collected United Nations Commodity Trade Statistics (UN Comtrade) database regarding macro factors GDP, Population, Exchange rate etc. was extracted World Bank Development Indicators (WDI) database.Data distance, common border, language colonial ties obtained website Centre d'Etudes Prospectives et d'Informations Internationales.The results suggest that PCFTA has very strong creation effect Pakistan.It helped exponential increase paved way promote two further cooperation.