Abstract

This paper examines Pakistans trade flows using a gravity model for the period 2002-2015. We have selected the following major trade partners: China, UAE, Saudi Arab, United States, Kuwait, Malaysia, Japan, India, Singapore, Afghanistan and Iran. In this research, we employed static and dynamic econometric approaches. The results from the two approaches are similar, which showed economic size and distance have played a crucial role in bilateral trade. Furthermore, political globalization was found to be significant and played a vital role during the study period. These variables confirm that the theoretical models, Pakistan and Pakistan trade partner with economic masses, political globalization, and distance strongly effect trade liaison

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