INTERNATIONAL TRADE TAX REVENUE AND TRADE LIBERALIZATION, A CASE STUDY OF PAKISTAN.
- (Ph.D, Scholar, National College of Business Administration& Economics, 40/E-1, Gulberg III, Lahore-Pakistan.
- Assistant Professor, University of Central Punjab, Lahore, Pakistan.
- Research economist, Pakistan Institute of Development Economics, Islamabad.
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This paper tries to find out the implications of trade liberalization on international trade tax revenues and its macroeconomic implication on Pakistan economy. The theoretical approach of trade reforms and its impact on the direction of change of revenue is ambiguous because of its dependence on the productivity of ‘trade tax revenues’. By using the data of twenty five years, the paper first establishes the productivity of ‘trade tax revenues’ in Pakistan, then by an econometric analysis exploration of the relationship between trade revenues and trade liberalization in Pakistan is done. It was observed through our analysis that there is high productivity of trade tax revenues, further, our results show a positive and significant relationship between trade liberalization and collection of trade tax revenue. To support this relationship, a second test of Granger’s causality is also performed which confirm the causal relationship between trade tax revenues and trade liberalization. It was suggested that supportive macroeconomic policies are prerequisite for successful trade liberalization.
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[Afzal Mahmood, Kanwal Zahra and Mehmood Khalid. (2017); INTERNATIONAL TRADE TAX REVENUE AND TRADE LIBERALIZATION, A CASE STUDY OF PAKISTAN. Int. J. of Adv. Res. 5 (Feb). 454-460] (ISSN 2320-5407). www.journalijar.com
atinal college of Business Administration and Economics (NCBA&E), Lahore, Pakistan
