Cross-Border Factors and Trade Agreements Affecting Meat, Milk and Fisheries Exports from Pakistan: Evidence from the Gravity Model Analysis

Abstract

The livestock and fishery sectors of Pakistan, not only contributes to GDP but can also considerably boosts export revenue for the country. This study identifies the cross-border factors and trade agreements affecting meat, milk, and fisheries exports from Pakistan. To accomplish this objective, the study used three different panel dataset of countries that import milk, meat, and fish from Pakistan. Results from commodity-specific gravity models show that increase in income in importing countries increases exports of the three products from Pakistan. Moreover, distance between Pakistan, and milk and milk products importing countries significantly reduces milk and milk products exports from Pakistan. Furthermore, an increase in the population of the age group of 65 and above increases milk and milk products exports. Besides, an increase in exchange rate in importing countries also decreases Pakistani meat and fishery exports. Countries who signed TIFA with Pakistan received higher exports of milk and milk products from Pakistan. The free trade agreements of other countries with Pakistan results in lower meat exports as compared to transit trade agreements. Finally, countries who signed preferential trade agreements with Pakistan received higher fishery exports. Findings of this study would provide valuable input for policymakers which in turn will enable them to devise appropriate commercial policies for milk, meat, and fishery products.