Abstract
AbstractRice is an important source for foreign exchange earnings for Pakistan’s economy, keeping this fact in mind, this study is to calculate competitiveness of rice export of Pakistan in international market compared to largest exporter countries and this article is the first empirical attempt using a panel-gravity approach by employing PPML technique and to find out potential countries for Pakistani rice export to 144 countries over the period 2003–2016. The outcomes of this study revealed that as compared to other major exporters of rice in the international market, Pakistan had high competitive and comparative advantage in the exportation and production of rice. We confirm the positive relationship between rice export of Pakistan and the main components of the gravity model, GDP of Pakistan and trading partner, the difference in income, common border, and WTO membership and an inverse relationship with distance, exchange rates and trade agreement. The results for rice export potential suggest Pakist...
Highlights
Rice is one of the most important food grains in the world, accounting for more than 20% of global calories consumed and 31% in low-income countries
Conclusion and policy implications The goal of this article was to investigate the competitiveness of Pakistani rice in the world market and export potential with the global world
Rice is an important source for foreign exchange earnings for the economy of Pakistan, keeping in mind of this fact, the competitiveness of Pakistan’s rice with ten major exporters was examined by applying revealed a competitive advantage
Summary
Rice is one of the most important food grains in the world, accounting for more than 20% of global calories consumed and 31% in low-income countries. Policies that concern rice prices, production, and trade have a large impact on the poor. In Pakistan, agriculture constitutes the largest sector of the economy. Directly or indirectly are depending on this sector. Agriculture sector’s contribution in Pakistan total gross domestic product (GDP) about 24% and accounts for half of the employed labour force and is the major source of foreign exchange earnings. Agriculture production is divided into two types, food crops and cash crops. Rice is the second staple food after wheat and it is contributing 3.2% to agriculture and 0.6% in 2016 clearly dropped if compared with previous year’s 0.91% in 2013
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