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Assessing Pakistan’S Textile Exports Under Trade Agreements, Amjad Masood, Junaid Ahmed, Khuda Bakhsh Dec 2024

Assessing Pakistan’S Textile Exports Under Trade Agreements, Amjad Masood, Junaid Ahmed, Khuda Bakhsh

CBER Conference

Textiles serve as the export engine of Pakistan’s economy, constituting 60 percent of its total exports. Despite this prominence, Pakistan's global share in textile exports has consistently declined. Considering this, this study explores the potential impact of Free Trade Agreements (FTAs) on fostering textile exports. The study applied a structural gravity model with the Poisson pseudo-maximum likelihood (PPML) estimator to analyze annual exports for the period 2002–2021. Findings exhibit a positive and statistically significant effect of FTAs on textile exports, with varied impacts compared to major competitors. Moreover, we categorized textile products at the HS 4-digit level based on their …