Nominal and Effective Rates of Protection by Industry in Pakistan: A Tariff Based Analysis
The study calculates nominal and effective rates of protection and their association with major characteristics of industries—labour intensity, export orientation and revealed comparative advantage. The results indicate that nominal as well as effective rate of protection has declined between two b...
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| Format: | Article |
| Language: | English |
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National University of Sciences and Technology
2021-01-01
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| Series: | NUST Journal of Social Sciences and Humanities |
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| Online Access: | https://njssh.nust.edu.pk/index.php/njssh/article/view/15 |
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| author | Nadeem Ul Haque Rizwana Siddiqui |
| author_facet | Nadeem Ul Haque Rizwana Siddiqui |
| author_sort | Nadeem Ul Haque |
| collection | DOAJ |
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The study calculates nominal and effective rates of protection and their association with major characteristics of industries—labour intensity, export orientation and revealed comparative advantage. The results indicate that nominal as well as effective rate of protection has declined between two benchmark years—1990 and 2002, but vegetable oil, motor vehicles, and a sector producing intermediate good ‘other manufacturing’ remains highly protected. Overall results reveal that manufacturing import competing sectors enjoy higher protection through trade policy—tariff while negative effective rate of protection for majority of agriculture and services sectors show their disadvantage position in the economy. The results clearly indicate government priority for manufacturing sector over agriculture and services sectors. The results also reveal that effective rate of protection is negatively associated with industrial characteristics such as labour intensity, export orientation, and revealed comparative advantage indicating that a sector needs less protection if it has comparative advantage—labour intensive and produce exportable commodity. The results of the study also indicate that trade policy in Pakistan shifts trade in favours of trade in intermediate inputs in 2002 from trade in final goods in 1990. There is a need to restructure tariff structure to remove bias against agriculture and services sectors. Agriculture where majority of unskilled labour engaged ask immediate action from government to improve the condition of poor.
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| format | Article |
| id | doaj-art-282c34a211214629905abdac688201ec |
| institution | DOAJ |
| issn | 2520-503X 2523-0026 |
| language | English |
| publishDate | 2021-01-01 |
| publisher | National University of Sciences and Technology |
| record_format | Article |
| series | NUST Journal of Social Sciences and Humanities |
| spelling | doaj-art-282c34a211214629905abdac688201ec2025-08-20T03:20:39ZengNational University of Sciences and TechnologyNUST Journal of Social Sciences and Humanities2520-503X2523-00262021-01-0131Nominal and Effective Rates of Protection by Industry in Pakistan: A Tariff Based AnalysisNadeem Ul Haque0Rizwana Siddiqui1Vice Chancellor at the Pakistan Institute of Development EconomicsResearch Economist at the Pakistan Institute of Development Economics. The study calculates nominal and effective rates of protection and their association with major characteristics of industries—labour intensity, export orientation and revealed comparative advantage. The results indicate that nominal as well as effective rate of protection has declined between two benchmark years—1990 and 2002, but vegetable oil, motor vehicles, and a sector producing intermediate good ‘other manufacturing’ remains highly protected. Overall results reveal that manufacturing import competing sectors enjoy higher protection through trade policy—tariff while negative effective rate of protection for majority of agriculture and services sectors show their disadvantage position in the economy. The results clearly indicate government priority for manufacturing sector over agriculture and services sectors. The results also reveal that effective rate of protection is negatively associated with industrial characteristics such as labour intensity, export orientation, and revealed comparative advantage indicating that a sector needs less protection if it has comparative advantage—labour intensive and produce exportable commodity. The results of the study also indicate that trade policy in Pakistan shifts trade in favours of trade in intermediate inputs in 2002 from trade in final goods in 1990. There is a need to restructure tariff structure to remove bias against agriculture and services sectors. Agriculture where majority of unskilled labour engaged ask immediate action from government to improve the condition of poor. https://njssh.nust.edu.pk/index.php/njssh/article/view/15ProtectionTrade Policy |
| spellingShingle | Nadeem Ul Haque Rizwana Siddiqui Nominal and Effective Rates of Protection by Industry in Pakistan: A Tariff Based Analysis NUST Journal of Social Sciences and Humanities Protection Trade Policy |
| title | Nominal and Effective Rates of Protection by Industry in Pakistan: A Tariff Based Analysis |
| title_full | Nominal and Effective Rates of Protection by Industry in Pakistan: A Tariff Based Analysis |
| title_fullStr | Nominal and Effective Rates of Protection by Industry in Pakistan: A Tariff Based Analysis |
| title_full_unstemmed | Nominal and Effective Rates of Protection by Industry in Pakistan: A Tariff Based Analysis |
| title_short | Nominal and Effective Rates of Protection by Industry in Pakistan: A Tariff Based Analysis |
| title_sort | nominal and effective rates of protection by industry in pakistan a tariff based analysis |
| topic | Protection Trade Policy |
| url | https://njssh.nust.edu.pk/index.php/njssh/article/view/15 |
| work_keys_str_mv | AT nadeemulhaque nominalandeffectiveratesofprotectionbyindustryinpakistanatariffbasedanalysis AT rizwanasiddiqui nominalandeffectiveratesofprotectionbyindustryinpakistanatariffbasedanalysis |