APPLICATION OF DATA ENVELOPMENT ANALYSIS FOR EXPLORING BILATERAL TRADE POTENTIALS

Authors

  • Madiha Riaz
  • Nausheen Syed
  • Zia-Ur-Rahman
  • Saeed-Ur-Rahman
  • Shafqat Abbas

Abstract

Global Economy has been completely transformed since the last few decades because of momentous growth is trade. Export led economic growth has transformed the direction of policy makers in almost every country. Trade relations escort to economic growth.  Therefore, this study is structured to grasp the picture of bilateral trade relations of Pakistan with other countries. To analyze the strength of trade relations, the theoretical and empirical concept of the gravity model has been utilized in the study. Further trade partner’s countries are ranked. Ranking of the countries is made by applying the Data Envelopment Analysis (DEA). Gravity model concept is employed to select the input and output for the DEA model, in order to rank the countries in reference to the utilization of their bilateral trade potential with Pakistan.  Gross Domestic Product, Total Population, Per capita gross domestic product and distance between Partner country and Pakistan are used as input variables. Bilateral trade flows (Export+ Import) between Pakistan and it relevant Partner is taken as output. Finding of the study depicts the ranking of the trade partners of Pakistan in reference to the optimum utilization of trade potentials. The counties that are ranked lower represents that they are not exploiting their trade potentials optimally with Pakistan. Hence, following the proposition of the study, Policy makers can get direction to revise their trade policies in order to utilize the potential and get the maximum gain from trade.

Downloads

Download data is not yet available.

Downloads

Published

2021-07-10 — Updated on 2021-07-13

Versions

How to Cite

Madiha Riaz, Nausheen Syed, Zia-Ur-Rahman, Saeed-Ur-Rahman, & Shafqat Abbas. (2021). APPLICATION OF DATA ENVELOPMENT ANALYSIS FOR EXPLORING BILATERAL TRADE POTENTIALS. PalArch’s Journal of Archaeology of Egypt / Egyptology, 18(1), 4906-4921. Retrieved from https://www.archives.palarch.nl/index.php/jae/article/view/9261 (Original work published July 10, 2021)