Does revealed comparative advantage matter in the gravity of FTAs?
Purpose – This study attempts to recognize the effects of the Pakistan–China free trade agreements (PCFTA) on promoting trade between the two economies. Design/methodology/approach – Following the concept of revealed comparative advantage (RCA) and free trade agreements, the study first identifies t...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2023-06-01
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| Series: | Journal of International Logistics and Trade |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JILT-06-2022-0018/full/pdf |
| _version_ | 1827750088004337664 |
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| author | Arsalan Ahmed Nazia Nazeer GulRukh Zahid Faisal Nawaz |
| author_facet | Arsalan Ahmed Nazia Nazeer GulRukh Zahid Faisal Nawaz |
| author_sort | Arsalan Ahmed |
| collection | DOAJ |
| description | Purpose – This study attempts to recognize the effects of the Pakistan–China free trade agreements (PCFTA) on promoting trade between the two economies. Design/methodology/approach – Following the concept of revealed comparative advantage (RCA) and free trade agreements, the study first identifies those commodities in which Pakistan and China have a robust RCA and then analyze the effect of PCFTA on the export value of those commodities for the bilateral trade between Pakistan and China. The study used the panel data in which more than the top 150 importers (j) have been selected for each case of Pakistan and China for the period of 2003–2015. Findings – The study concludes that even with the higher convergence rate, the good RCA does not guarantee a positive effect of the free trade agreement on the commodities. Originality/value – The study contributes to the existing literature by integrating RCA with the gravity model by adopting a sequential mode for Pakistan–China free trade agreement. |
| first_indexed | 2024-03-11T06:38:39Z |
| format | Article |
| id | doaj.art-3da5a4913e3d4d36b652ac260307be81 |
| institution | Directory Open Access Journal |
| issn | 1738-2122 2508-7592 |
| language | English |
| last_indexed | 2024-03-11T06:38:39Z |
| publishDate | 2023-06-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of International Logistics and Trade |
| spelling | doaj.art-3da5a4913e3d4d36b652ac260307be812023-11-17T10:43:51ZengEmerald PublishingJournal of International Logistics and Trade1738-21222508-75922023-06-012128410710.1108/JILT-06-2022-0018Does revealed comparative advantage matter in the gravity of FTAs?Arsalan Ahmed0Nazia Nazeer1GulRukh Zahid2Faisal Nawaz3Business School, University of Southampton – Malaysia Campus, Iskandar Puteri, MalaysiaNational University of Computer and Emerging Sciences, Lahore, PakistanApplied Economic Research Centre, University of Karachi, Karachi, PakistanDepartment of Mathematics, Dawood University of Engineering and Technology, Karachi, PakistanPurpose – This study attempts to recognize the effects of the Pakistan–China free trade agreements (PCFTA) on promoting trade between the two economies. Design/methodology/approach – Following the concept of revealed comparative advantage (RCA) and free trade agreements, the study first identifies those commodities in which Pakistan and China have a robust RCA and then analyze the effect of PCFTA on the export value of those commodities for the bilateral trade between Pakistan and China. The study used the panel data in which more than the top 150 importers (j) have been selected for each case of Pakistan and China for the period of 2003–2015. Findings – The study concludes that even with the higher convergence rate, the good RCA does not guarantee a positive effect of the free trade agreement on the commodities. Originality/value – The study contributes to the existing literature by integrating RCA with the gravity model by adopting a sequential mode for Pakistan–China free trade agreement.https://www.emerald.com/insight/content/doi/10.1108/JILT-06-2022-0018/full/pdfTrade liberalizationRevealed comparative advantageGravity modelPakistan–China free trade agreements |
| spellingShingle | Arsalan Ahmed Nazia Nazeer GulRukh Zahid Faisal Nawaz Does revealed comparative advantage matter in the gravity of FTAs? Journal of International Logistics and Trade Trade liberalization Revealed comparative advantage Gravity model Pakistan–China free trade agreements |
| title | Does revealed comparative advantage matter in the gravity of FTAs? |
| title_full | Does revealed comparative advantage matter in the gravity of FTAs? |
| title_fullStr | Does revealed comparative advantage matter in the gravity of FTAs? |
| title_full_unstemmed | Does revealed comparative advantage matter in the gravity of FTAs? |
| title_short | Does revealed comparative advantage matter in the gravity of FTAs? |
| title_sort | does revealed comparative advantage matter in the gravity of ftas |
| topic | Trade liberalization Revealed comparative advantage Gravity model Pakistan–China free trade agreements |
| url | https://www.emerald.com/insight/content/doi/10.1108/JILT-06-2022-0018/full/pdf |
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