Exploring the Gravity of Agricultural Trade in China–Pakistan Free Trade Agreement

Lateef, Majid; Tong, Guangji; Riaz, Muhammad Usman

doi:10.1080/10971475.2018.1481008

Cited by 10 publications

(8 citation statements)

References 36 publications

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“…Additionally, WEN et al, (2013);LATEEF et al, (2018);J. ZHANG et al, (2019) have reported the significance of FTA in Agricultural trade.…”

Section: Application Of Gravity Model In Agricultural Tradementioning

confidence: 99%

“…ZHANG et al, (2019) have reported the significance of FTA in Agricultural trade. Apart from distance which had an inverse impact, Nasrallah et al, (2020), J. ZHANG et al, (2019), & LATEEF et al, (2018 ESSEN (2017) reported that a 1% increase in the GDP of an SSA country (Sub-Saharan Africa) should lead to a 0.28% increase in its export of agricultural commodities to China. Similarly, a 1 % increase in infrastructure would lead to a 0.12 % increase in agricultural commodity exports to China.…”

Section: Application Of Gravity Model In Agricultural Tradementioning

confidence: 99%

“…This demonstrated how the growing demand for resources to satisfy China's ever-increasing populace could transform trade deals in favor of the ECOWAS sub-region. The arable land size of ECOWAS (ARLj) (LATEEF et al, 2018) plays a significant positive role in the volume of exports from the region. The results showed that a unit increase in the arable land size of the ECOWAS countries would contribute to an increase in the volume of Agricultural exports to mainland China by 3.56%.…”

Section: Agricultural Products Export Determinantsmentioning

confidence: 99%

“…To address this pressing question, we adopted the PPML estimation as suggested by SANTOS SILVA & TENREYRO (2006) due to its distinct advantages over OLS. First, the PPML addresses heteroscedasticity to unsure unbiased estimates and allows for zero-trade observations (LATEEF et al, 2018;TADESSE & AbAFITA, 2021). Finally, language variable has often been defined in different criteria other than the number of Confucius institutions in partner countries hence based on the extended gravity model; this study analyzed the drivers of this important trade flow by uniquely substituting the number of Confucius institutes in ECOWAS countries as language variable.…”

Section: Introductionmentioning

confidence: 99%

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Econometric Analysis of China-ECOWAS agricultural products trade

et al. 2023

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Agriculture trade remains the economic fulcrum of most African countries as the continent continues to host the largest percent of arable land. This research analyzed the Economic Community of West African States (ECOWAS) and China’s agricultural products trade determinants based on 19 years (2000-2018) panel dataset of West African countries aggregate agricultural products exports ($) and macroeconomic variables; GDP, population, arable land, language investment, and trade association(WTO)) as predictors. The PPML estimation method was employed due to its prediction accuracy, the size of the data, and potential hetroskadacity issues. With a 78.5% prediction power, the model explained the variation in ECOWAS-China agricultural trade (Exports). GDPj, lnPOPj, lnPOPi, and lnARLj, LndLj, ConfInsj, and WTOij were positive and statistically significant determinants of trade as hypothesized by existing trade literature. In addition, the China’s population (lnPOPj) had a value of 0.5877, which is significant at the 5% level, indicating that a 1% increase in the Chinese population significantly increases trade in agricultural products with ECOWAS states. The coefficient of distance (Dij) is -4.4573 statistically significant at the 1% level, indicating that distance between partners impedes trade flow. There are unidentified barriers that delay the progress of trade in agricultural products between ECOWAS and China. Based on the above findings, Investments in ECOWAS arable lands demand urgent attention if significant progress in exports is expected, additionally, governments of both partners should assist Agricultural research and development to identify and rectify stifling trade barriers. Furthermore, as trade between ECOWAS and China has not yet reached its full peak, studies on export determinants of individual Agro-commodities and potentials are needed to enrich literature.

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“…Additionally, WEN et al, (2013);LATEEF et al, (2018);J. ZHANG et al, (2019) have reported the significance of FTA in Agricultural trade.…”

Section: Application Of Gravity Model In Agricultural Tradementioning

confidence: 99%

Section: Application Of Gravity Model In Agricultural Tradementioning

confidence: 99%

Section: Agricultural Products Export Determinantsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Econometric Analysis of China-ECOWAS agricultural products trade

et al. 2023

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“…Trade advantages can be diverse across nations, upon a country's particular set of interests, economic outlook, and diplomatic relationships . In the context of trade liberalization, the China-Pakistan Free Trade Agreement (CPFTA) initially formed in 2006, is still debated, and a popular subject for researchers Lateef et al, 2018;Haq et al, 2021;Shah, 2021;Qiu et al, 2022). The impact of free trade agreements, however, on some particular sectors of Pakistan's economy, such as the agriculture sector, has widely drawn criticism (Barbalet et al, 2015;Qiu, 2020;Butt et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Does the China–Pakistan free trade agreement benefit the vegetable exports of Pakistan? A gravity estimation

Khan,

Chen,

2024

Front. Sustain. Food Syst.

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In the backdrop of criticism that the China-Pakistan Free Trade Agreement has disproportionately favored China, particularly in agricultural trade, there has been a surge in Pakistan’s imports, leading to a trade deficit. This study attempts to evaluate the impact of CPFTA 1&2 on the vegetable exports of Pakistan which is an important sector of the agricultural industry. A panel data set of Pakistan’s vegetable exports to its trading partners from 2003 to 2021 was analyzed with the extensively used gravity model of trade. The vegetable export data was sourced from the International Trade Centre (ITC) which is based on the Pakistan Bureau of Statistics. The results suggest that the China-Pakistan Free Trade Agreement (CPFTA-I) has a positive association with Pakistan’s vegetable exports to China. However, trade liberalization with Afghanistan, Sri Lanka, and Malaysia plays a more substantial role in driving Pakistan’s vegetable exports. CPFTA-II has not had a measurable or statistically significant impact on the vegetable exports of Pakistan as this period was highly influenced by COVID-19. The results of colonialism variables show that Pakistan is exporting more to countries with the same colonial history. Moreover, the results of the geographical variable suggest that Pakistan should explore more close markets to expand vegetable exports. Policy implications suggest the need to reduce trade costs, leverage CPEC infrastructure, enrich trade relations with neighboring countries, and involve business professionals in policy negotiations.

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Vietnam’s Seafoood Imports Under the Impact of the United Kingdom–Vietnam Free Trade Agreement

Minh¹,

Diep²

2023

Contemporary Economic Issues in Asian Countries: Proceeding of CEIAC 2022, Volume 1

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Exploring the Gravity of Agricultural Trade in China–Pakistan Free Trade Agreement

Cited by 10 publications

References 36 publications

Econometric Analysis of China-ECOWAS agricultural products trade

Econometric Analysis of China-ECOWAS agricultural products trade

Does the China–Pakistan free trade agreement benefit the vegetable exports of Pakistan? A gravity estimation

Vietnam’s Seafoood Imports Under the Impact of the United Kingdom–Vietnam Free Trade Agreement

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