Trade Liberalization in South Asian Countries
Introduction
Trade and economic growth has a strong relationship, for attaining sustainable growth trade is must. Trade helps countries to use its resources efficiently. Trade is beneficial to all countries weather one country is less efficient in its resource utilization[1]. It is common thinking that trade is only beneficial for developed nation but it is not the true.
Throughout the history, civilizations engaged in trade. Trade policy can be categorized into free trade (Liberalized trade) policy and Protectionist trade policies. There always been a conflict between free trade supporters and protectionists. In history Mercantilists were in favor of protectionists, in mercantilists one of the famous economist was Thomas Munn’s, today’s economist also have some reservation about free trade like Alan S. Blinder, on the other hand Adam Smith and Ricardo gave the idea of free trade. Classical economists also support and think that free trade can be helpful in getting peace in world like Keynes and Cordell Hull.
Trade liberalization in South Asian Countries
For Pakistan the sixth Five-year plan (1983-88) marks the beginning of the process of deregulation and liberalization, which was carried out with much greater forces after 1988 when Pakistan economy became completely subservient to IMF and World Bank directives.[2] For the first time in history Pakistan changed its trade policy. That new policy enhances the efficiency of the industrial sector. This policy was concentrates on exports-led industrialization for the first time. In this period, Pakistan saw a remarkable growth in its economic sector. It was calculated that the “private sector’s” share in total investment increased from 38 percent in FY83 to 42 percent in FY 88 and in manufacturing sector its share in investment rose from 51 percent to 83 percent.[3] This shows how much Pakistan gain from trade liberalization.
India has adopted several waves of far-reaching trade reforms since 1991.
Trade and economic growth has a strong relationship, for attaining sustainable growth trade is must. Trade helps countries to use its resources efficiently. Trade is beneficial to all countries weather one country is less efficient in its resource utilization[1]. It is common thinking that trade is only beneficial for developed nation but it is not the true.
Throughout the history, civilizations engaged in trade. Trade policy can be categorized into free trade (Liberalized trade) policy and Protectionist trade policies. There always been a conflict between free trade supporters and protectionists. In history Mercantilists were in favor of protectionists, in mercantilists one of the famous economist was Thomas Munn’s, today’s economist also have some reservation about free trade like Alan S. Blinder, on the other hand Adam Smith and Ricardo gave the idea of free trade. Classical economists also support and think that free trade can be helpful in getting peace in world like Keynes and Cordell Hull.
Trade liberalization in South Asian Countries
For Pakistan the sixth Five-year plan (1983-88) marks the beginning of the process of deregulation and liberalization, which was carried out with much greater forces after 1988 when Pakistan economy became completely subservient to IMF and World Bank directives.[2] For the first time in history Pakistan changed its trade policy. That new policy enhances the efficiency of the industrial sector. This policy was concentrates on exports-led industrialization for the first time. In this period, Pakistan saw a remarkable growth in its economic sector. It was calculated that the “private sector’s” share in total investment increased from 38 percent in FY83 to 42 percent in FY 88 and in manufacturing sector its share in investment rose from 51 percent to 83 percent.[3] This shows how much Pakistan gain from trade liberalization.
India has adopted several waves of far-reaching trade reforms since 1991.