Impact of Technical Barriers to Trade and Sanitary and Phytosanitary Measures on Pakistan Exports
Journal Title: Research Journal Social Sciences (Online) - Year 2017, Vol 6, Issue 2
Abstract
Technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures are two major tools of non-tariff barriers set by world trade organisation (WTO) and should strictly followed by WTO member countries. These NTBs are set by WTO for safety of food, human, animal, plants and environment. In global competitive market producers/countries can maintain their trade position and trade volume only if they follow WTO rule set for quality and standards of products. These non-tariff barriers have promoted as well as restrict trade. As exports in any country promotes not only because of demand and supply of products but it depends on correct functioning of all micro and macroeconomic policies. This paper discusses the role of Pakistan macroeconomic policies that facilitate trade and redefine the prosperity paths in changing global and local economies. Currently CPEC a big opportunity for Pakistan but its challenge for Pakistan to promote its exports in the presence of non tariff barriers. We analysed impact of these NTBs on trade between Pakistan and its top export partners that are U.S.A, China, and U.A.E, using HS-2 digit code data. To quantify TBT and SPS measures we employ coverage ratio and frequency index, Coverage ratio captures the extent of exports covered by SPS and TBT, whereas frequency index considers the presence/absence of the SPS and TBT in a product without indicating the value of exports covered. As these all countries are member of WTO and follow its standards regarding quality of products, so they constantly uses technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures against imports from Pakistan. Literature shows TBT imposed by importer on Pakistan’s exports has positively affected the export performance while SPS discourage exports. In this research paper, we constructed SPS and TBT database from 2003-2016 to examine the influence of NTBs initiated as well as enforced on exports of Pakistan, and compare impact of tariff and non tariff barriers (TBT and SPS) on exports of Pakistan. A separate effect of these NTBs on manufacturing and agriculture sectors is also analysed. The frequency index and export coverage ratio shows that TBT measure promoted exports of manufacturing sector while SPS also promote exports of agriculture sector. The data set is sourced by WTO, UN Comtrade, and WDI.
Authors and Affiliations
NOOR- HERA, SAIMA SHAFIQUE, AMIR MUSTAFA
Keywords
Related Articles
- EP ID EP255545
- DOI -
- Views 107
- Downloads 0
Corruption, Growth and Income Inequality in Selected Asian Countries
Increasing corruption is alarming for both economic growth and income inequality. Various studies show that rising corruption has detrimental effects on economic growth and income inequality. Moreover, corruption decreas...
Dynamic Role of Zakat in Alleviating Poverty: A Case Study of Pakistan
Poverty is a curse at individual as well as community level. It is a threat to humanity at whatever level it exists. All the societies of the world have made efforts to address this challenge. Islam being the religion of...
Determinants of Child Labour in Khyber Pakhtunkhwa: An Econometric Analysis
This paper examines how child labour is useful for highlighting those factors because of which parents are forced to engage their children in economic activities. The research is based on cross-sectional data collected f...
Determinants of Farmers Earning: A Case Study of Tehsil Arifwala, Punjab (Pakistan)
Present study investigates the determinants of farmers earning at Tehsil Arifwala, Punjab. The primary data of 309 rural households is collected through stratified random sampling technique. Ordinary least squares (OLS)...
Estimating the Long-Run Creditworthiness of Pakistan
The paper analyses the long-run creditworthiness of Pakistan. The analysis is conducted on time series data of the years 1972-2013. Two Probit Models are estimated by Maximum Likelihood Method. Three specifications of Pr...