Do EU and US GSPs matter for the cotton and textiles products exports of Pakistan?
Journal of International Trade Law and Policy
ISSN: 1477-0024
Article publication date: 12 March 2019
Issue publication date: 12 March 2019
Abstract
Purpose
This study aims to estimate and compare the effect of EU and US GSP schemes on the cotton and textile sectors of Pakistan.
Design/methodology/approach
The analysis used data from 2003 to 2014 for all the 14 categories of cotton and textile products at two-digit using HS commodity classification. Effects of the EU and US GSPs are estimated using a gravity trade model.
Findings
Both the concessions are statistically significant determinants of wadding and nonwoven special yarn, articles of apparel-knitted, articles of apparel-not-knitted and made-up textiles sectors. In the rest of the sectors, the results are a mix. Among these, EU GSP is a statistically significant determinant of wool and animal hair and manmade filaments yarn exports, while the US GSP is important for the exports of cotton yarn and woven fabrics, manmade staple fibers, carpets, impregnated fiber and knitted or crocheted fabrics.
Originality/value
The research contributes in two major ways. First, it estimates the effects of EU and US GSPs on the textile sector of Pakistan while controlling for the effect of tariffs. Second, the study tests joint hypotheses about the role of EU and US GSPs in the cotton and textile products exports of Pakistan.
Keywords
Acknowledgements
The article is based on the MS dissertation titled “The effect of GSP Plus on textile exports of Pakistan”, Department of Economics, Abdul Wali Khan University Mardan, KP Pakistan, 2015.
Citation
Majeed, R., Haq, Z.U., Ishaq, M., Iqbal, J. and Ullah, Z. (2019), "Do EU and US GSPs matter for the cotton and textiles products exports of Pakistan?", Journal of International Trade Law and Policy, Vol. 18 No. 1, pp. 2-18. https://doi.org/10.1108/JITLP-09-2018-0040
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited