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The current study analyzes the impact of tariff and Non-Tariff Barriers (NTBs) on exports of Pakistan with its partner countries at aggregated as well as disaggregated level. By employing the Gravity Model of Trade with Fixed Effects methodology controlling for country, product and time fixed effects, the study utilizes panel data from Pakistan and 191 other countries for the period 1995-2017. The findings reveal a negative relationship between tariff barriers and trade flows. In the context of NTBs, both positive and negative relationships are found. Specifically, Sanitary and Phytosanitary (SPS) measures decrease trade, while Technical Barriers to Trade (TBT) measures tend to increase it, particularly at the disaggregated product level. The study concludes that NTBs might not be detrimental for the country. Pakistan's exports are more affected by SPS measures compared to other NTBs. The study’s policy implication is that exporters need to prioritize compliance with TBT measures.
Shuja et al. (Sat,) studied this question.