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Welfare Effects in Regional Block Trade: A Case Study of Exporting Dried Dates from Khairpur Mirs

机译:区域大宗贸易中的福利效应:以海毛紫杉出口干枣为例

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This research investigates the welfare effect of economic costs and benefits of Pak-India trade with exporting dried dates. The first scenario is when normal trading relation with India will be restored. It means that both countries will give the MFN status to each other. in the second scenario, the SAFA will be operative and there will be free trade between India and Pakistan and both countries will remora all tariffs and custom duties from each other's imports. After employing the simplified static analysis framework, the analysis based on simulations reveals that current demand for Khairpur dates will expand after the FTA and consumer surplus will increase. The drop in the domestic prices of dates will increase the production of many down stream industries, which will have pleasant multiplier effects on the economy. Overview of dates industry and results of economic analysis indicate that Pakistan will get benefit from the FTA by getting the cheaper labor for which will increase their competitiveness, and to reduce the costs of trade diversion in some commodities, the government should reduce MFN tariffs on industrial dates before implementing the FTA a key rule of multilateral trade system is the reduction in trade barriers should be applied, on a most-favored nation basis (MFN), to all WTO members. The only exception to the MFN principle built into the GATT legal framework is the provision for reciprocal free trade within customs unions and free trade areas (GATT article XXIV) objectives of the present study is to analyze qualitatively and quantify the potential economic cost and benefits of prospective trade between India and Pakistan to consumers, producers and government of the two countries for export of dried date under the following two scenarios, i.e, when normal trading relations between Pakistan and India will be restored and when there will be a free trade between Pakistan and India in the presence of South Asian Free Trade Agreement (SAFTA). Following the analytical framework discussed by PO managerial (20001), we employ the simplified static analysis for individual industries to instigate the welfare gains or losses.
机译:这项研究调查了出口干枣后白印度贸易的经济成本和收益的福利效应。第一种情况是将恢复与印度的正常贸易关系。这意味着两国将相互给予最惠国待遇。在第二种情况下,南非自由贸易区将开始运作,印度和巴基斯坦之间将实现自由贸易,两国将对彼此进口的所有关税和关税加征责。在采用简化的静态分析框架之后,基于模拟的分析表明,自贸协定之后,当前对海毛枣的需求将扩大,消费者剩余将增加。枣国内价格的下跌将增加许多下游产业的产量,这将对经济产生令人愉悦的乘数效应。枣产业概述和经济分析结果表明,巴基斯坦将获得廉价贸易,从而从中获得自由贸易协定的好处,这将提高巴基斯坦的竞争力,并减少某些商品的贸易转移成本,政府应降低对工业品的最惠国关税。在实施自由贸易协定之前,多边贸易体系的关键规则是应在最惠国基础上对所有WTO成员实行贸易壁垒的减少。关贸总协定法律框架中所包含的最惠国待遇原则的唯一例外是在关税同盟和自由贸易区之间建立相互自由贸易的规定(关贸总协定第二十四条),本研究的目标是定性分析并量化潜在的经济成本和利益。在以下两种情况下,印度和巴基斯坦之间的干枣出口到两国的消费者,生产者和政府之间的预期贸易,即何时恢复巴基斯坦和印度之间的正常贸易关系以及何时巴基斯坦之间进行自由贸易印度和印度签署了《南亚自由贸易协定》(SAFTA)。遵循PO管理人员(20001)讨论的分析框架,我们对单个行业采用简化的静态分析来促进福利的得失。

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