FISCAL IMPACTS OF TRADE LIBERALIZATION IN PAKISTAN - AN APPLICATION OF SMART MODEL
Keywords:
Developing Economies, International Trade, Trade liberalization, Trade, Welfare
Abstract
Many underdeveloped countries have experienced trade liberalization under the umbrella of international organizations in the past years. However, diverse economies have different experiences of trade liberalization. To analyze the experience of Pakistan trade liberalization, a Software for Market Analysis and Restriction (SMART) model, proposed by the United Nations Conference on Trade and Development (UNCTAD) and the World Bank is utilized for the data from 1995 to 2013. Pakistan trade liberalization has increased the overall trade and welfare of consumers but has reduced the international trade significantly. Trade liberalization policies also have significantly affected international trade tax revenue. Therefore, policymakers should follow the impacts of the policies in both long and short run.
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Modelling, 29(4), 1220-1227.
a cointegration analysis. Applied Economics, 32(8), 1077-1084.
Ali, W., & Abdullah, A. (2015). The Impact of Trade Openness on the
Economic Growth of Pakistan: 1980-2010. Global Business and
Management Research, 7(2), 120-129.
Basirat, M., Aboodi, F., & Ahangari, A. (2014). Analyzing the effect of
economic variables on total tax revenues in Iran. Asian Economic
and Financial Review, 4(6), 755-767.
Cagé, J., & Gadenne, L. (2012). The Fiscal Cost Of Trade Liberalization.
Paris School of Economics Working Paper, 2012 (27).
Castro, G. Á., & Camarillo, D. B. R. (2014). Determinants of tax revenue
in OECD countries over the period 2001–2011. Contaduría y
administración, 59(3), 35-59.
Chaudhry, I. S., & Munir, F. (2010). Determinants of Low Tax Revenue
in Pakistan. Pakistan Journal of Social Sciences (PJSS), 30(2), 439-452.
Ebeke, C., Mansour, M. & Rota Graziosi, G. (2016). The Power to Tax in
Sub-Saharan Africa: LTUs, VATs, and SARAs. Fondation Pour
Les Etudes et Recherches Sur Le Developpement International
(FERDI); Working Paper 154.
Epaphra, M. (2015). Tax rates and tax evasion: Evidence from missing
imports in Tanzania. International Journal of Economics and
Finance, 7(2), 37-122.
Gadenne, L. (2012). Tax me, but spend wisely—the political economy of
taxes: evidence from Brazil. University of London: Mimeo.
Ghatak, S.M. (1995). Exports, export composition, and growth:
cointegration and causality evidence for Malaysia. Applied
Economics, 2(29), 213-223.
Glenday, G., & Shukla, G.P. (2006). Belize: A Review of Public
Expenditures.Washington, DC, United States: Inter-American Development Bank.
Global Trade Liberalization and the Developing Countries, Staff Paper, IMF,
Retrieved from: https://www.imf.org/external/np/exr/ib/2001/110801.htm.
Government of Pakistan. (2010-2015). ‘FBR Year Book,’ Federal Board
of Revenue, Ministry of Commerce, Islamabad.
International Monetary Fund, IMF. (2001). Structural Conditionalities in
Fund Supported Program. Retrieved from http:// www.imf.org.
Jaffri, A. A., Tabassum, F., & Asjed, R. (2015). AN EMPIRICAL
INVESTIGATION OF THE RELATIONSHIP BETWEEN
TRADE LIBERALIZATION AND TAX REVENUE IN
PAKISTAN. Pakistan Economic and Social Review, 53(2), 317.
Karagöz, K. (2013). Determinants of tax revenue: does sectorial
composition matter?. Journal of Finance, Accounting, and Management, 4(2), 50-63.
Kassim, L. (2015). The impact of trade liberalization on export growth and
import growth in Sub-Saharan Africa. In Regional Integration and
Trade in Africa (pp. 47-68). UK: Palgrave Macmillan.
Laird, S., & Yeats, A. (1986). The UNCTAD trade policy simulation
model. In A Note on the Methodology, Data and Users, United
Nations Conference on Trade and Development (Discussion Papers núm. 19).
Lucas, R. E. (1988). On the Mechanics of Economic Development. Journal
of Monetary Economics, 22(1), 3-42.
Mahmood, H., & Chaudhary, A. R. (2013). Impact of FDI on tax revenue in
Pakistan. Pakistan Journal of Commerce and Social Sciences, 7(1),59-69.
McIntyre, M. A. (2005). Trade integration in the East African Community: an
assessment for Kenya (No. 5-143). International Monetary Fund.
MoF. (2000-2016). Economic Survey of Pakistan. Ministry of Finance, Pakistan.
Mushtaq, S., Bakhsh, K. & Hassan, S. (2012). Estimating the impact of
trade liberalization on tax revenue in Pakistan. Journal of
Agriculture and Social Sciences, 8(4), 148-150.
Pritchett, L., & Sethi, G. (1994). Tariff rates, tariff revenue, and tariff reform:
some new facts. The World Bank Economic Review, 8(1), 1-16.
Shahbaz, M., Loganathan, N., Mujahid, N., Ali, A., & Nawaz, A. (2016).
Determinants of life expectancy and its prospects under the role
of economic misery: A case of Pakistan. Social Indicators
Research, 126(3), 1299-1316.
Velaj, E., & Prendi, L. (2014). Tax revenue-The determinant factors-The case
of Albania. European Scientific Journal, ESJ, 10(10), 525-531.
Yasmin, B., & Jehan, Z. (2006). Trade liberalization and economic
development: Evidence from Pakistan. Lahore Journal of
Economics, 11(1), 19-34.
Zaman, K., Khan, M. M., & Ahmad, M. (2012). RETRACTED: The
relationship between foreign direct investment and pro-poor
growth policies in Pakistan: The new interface. Economic
Modelling, 29(4), 1220-1227.
Published
2017-12-15
How to Cite
Mahmood, A., Kalim, D. R., & Zahara, D. K. (2017). FISCAL IMPACTS OF TRADE LIBERALIZATION IN PAKISTAN - AN APPLICATION OF SMART MODEL. Journal of Business Strategies, 11(2), 89-105. Retrieved from http://greenwichjournals.com/index.php/businessstudies/article/view/379
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