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Title IMPACT OF SANITARY AND PHYTO-SANITARY MEASURES ON TRADE OF PAKISTAN WITH EUROPEAN AND NORTH AMERICAN COUNTRIES.

Author(s) Zara Masood

Abstract SPS measures have a very important role in bilateral exports. Non-tariff barriers are playing a major role in Pakistan's bilateral trade with both developed and developing countries, but they both have a promoting and a restricting impact. Other macroeconomic factors, such as trade partners' GDP and tariffs, have a substantial but negative impact on Pakistan's exports. Yet this study highlights the impact of SPS in addition to tariff and other macroeconomic variables on Pakistan agriculture exports to European Union and North American countries from 2003 to 2018. This study makes use of macroeconomic variables such as exports, Pakistan's GDP, and trade partners’ GDP and these variables are used to carry out estimations of model. SPS, tariffs and exchange rates are used as variables and were calculated using panel data at the HS 2 digit code level. The descriptive analysis between SPS and other macroeconomic variables on Pakistan agriculture exports to European Union and North American countries shows that Pakistan agriculture exports have trade restrictive effects. Panel data is used in this study by using some famous techniques, such as Sarjan j test and Panel unit root test. Thereafter, Housman test is used to seek favorable results. According to Housman test, random effect model is better than fixed effect model by rejecting the alternative hypothesis. There is some issue of endogeniety, therefore we used generalized method of moment which is developed by Arellano and bound in 1991. It shows the negative and statistically significant impact of SPS and tariff on Pakistan agriculture exports to European Union and North American countries. The proximate reason behind negative and significant impact is that partner countries have imposed cumulative sanitary and phytosanitary measures on Pakistan’s export because the country fails to fulfill the SPS requirements. In order to increase exports, Pakistan’s relevant ministries and institutions may improve trade policies and programs across all sectors. Keywords: Sanitary and Phytosanitary, World Trade Organization, Tariff, Pakistan, European Union, North America.

Type Thesis/Dissertation

Faculty Management Sciences

Department Economics

Language English

Publication Date 2021-09-24

Subject Macro Economics

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