Abstract

The study determined the factors that significantly influence the leather sector exports using extended gravity model containing real gross domestic product (RGDP) of Pakistan & trading partner, geographical distance, real exchange rate (RER) and tariff (TOIL) as explanatory variables with the selected top ten Pakistani leather exports destinations Germany, USA, Italy, Spain, U.K, Netherlands, France, Hong Kong, China, and Canada for the period 1991 to 2020. Feasible Generalized Least Square method is utilized to estimate the coefficients of the model. The empirical findings of the study indicate that RGDP of Pakistan and trade partner and RER put out significant positive effect on the leather exports of Pakistan. While, geographical distance and TOIL exercise a significant negative impact on the leather exports. It is recommended that policy makers should try to engage in more trade activities with large economies and must also essay to actively participate in regional trade

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