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  • Macroeconomic determinants ...
    Abbas, Shujaat; Bhutto, Sindhu

    Journal of the Textile Institute, 01/2024, Letnik: 115, Številka: 1
    Journal Article

    Pakistan ranks among the top leading textile exporters in the World, which is its major tradable product with more than 56% contribution to total export receipts. This study investigates determinant and potential export markets for textile-clothing and apparel exports of Pakistan across 58 global trading partners, 26 from Asia and Africa and 32 from Europe, America, and Oceania. The augmented versions of the gravity model are estimated by employing contemporary panel econometric to explore the effects of selected macroeconomic and policy variables on export flow. The findings urge Pakistan to address domestic supply-side constraints that have a significant positive effect of higher intensity of export flow. The results of core variables are consistent with the theory of gravity model and augmented variables reveal that relative prices have a significant positive impact of lower elasticity; whereas binary variables urge Pakistan to enhance its regional trade with regional and border for shared prosperity. The free trade agreements with Malaysia, China, and the USA along with GPS plus status are significantly creating exports from the textile sector; therefore, attempts should be taken to expand them. Moreover, the findings of the export potential show untapped potential markets for the textile sector.