Abstract
Bilateral trade between India and Pakistan is as old as the two countries are, but the volume of trade between them is minuscule relative to the size of their economies.. This paper is an attempt to measure importance, strength and nature of bilateral trading relationship between India and Pakistan. Several statistical indices can be used to measure trade relations between two nations. One such index is the trade intensity used in this paper. Bilateral trade relationships between India and Pakistan described in terms of intensity indices helps to identify how intensively the countries are trading with each other. Bilateral trade intensity indices have been calculated for the time period 1994 to 2008.. The limitation of the study is that the trade intensity indices have limited application for measuring bilateral potential trade between nations. The policy implications of the analysis are that there is no option for the two countries than to increase the economic ties. This paper is divided into three sections. Section first Introduction followed by result and discussions in section second and section third conclusion.
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