Pakistan Institute of Development Economics



The Role of Global Economic Growth in Pakistani Agri-Food Exports

This analysis uses least squares and Heckman maximum likelihood estimation procedures with fixed effects to explore the role of economic growth in 36 developed and developing economies—categorised as low-, lower-middle-, upper-middle-, and high-income—in explaining their agri-food import of 29 products from Pakistan during 1990 to 2000. We reject the hypothesis that the economic growth of these economies does not influence Pakistani agri-food product exports. However, the estimated income elasticities are statistically elastic only for lower-middle income countries, suggesting that their expenditure on Pakistani agri-food exports will increase disproportionately as their economies grow. Hence, lower-middle-income countries provide good export opportunities for Pakistan’s agri-food products.

Mohamed Gheblawi, Zahoor Ul Haq, Safdar Muhammad