Abstract
Present study endeavours to assess the comparative advantage of Pakistan’s exports to selected
regional economies around the world namely Asian, OECD, and Latin American economies.
Revealed comparative advantage Balassa Index (1965) and trade complementary indices of
Pakistan over the sample of 70 economies have been checked at aggregated and disaggregated
level classification of UN-Com Traderevision-2. Results revealed that Pakistan has a
comparative advantage in 57 sectors on average per year, coefficient of variation is 0.68,
standard deviation is 0.57 at the aggregated and disaggregated level over the period of time,
and trade complementary indices reported that exports of Pakistan and imports of sample
economies having the positive and strong relationship. Long-term relationship has been tested
using co-integration mechanism; speed of adjustment has been gauged through vector error
correction model and feedback relationship has been measured using granger causality on total
exports and economic growth. Results revealed that there is positive and significant
relationship between total exports and economic growth and there is a feedback causal
relationship.
IJAZ HUSSAIN BOKHARI, SHAFAQAT MEHMOOD, KHURRAM SULTAN. (2015) DOES COMPARATIVE ADVANTAGE AFFECT ECONOMIC GROWTH: A CASE OF PAKISTAN WITH ASIAN, OECD AND LATIN AMERICAN ECONOMIES 1982- 2011, Paradigms , Vol 9, Issue 1.
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