Analyzing the Impact of European Generalized System of Preferences (GSP) Plus Scheme on the Exports of Pakistan using a Gravity Model

Authors

  • Sartaj Ali MPhil Scholar at Institute of Management Sciences, Peshawar, Pakistan
  • Nadeem Iqbal Assistant Professor, Department of Economics, University of Peshawar, Peshawar, Pakistan
  • Aisha Rehman Phd Scholar at Department of Economics, University of Peshawar, Peshawar, Pakistan

Keywords:

Preference margin; GSP-Plus scheme; Gravity model; PPML; NBR

Abstract

The EU granted Pakistan Generalized System of Preferences (GSP) Plus status in 2013, which has been in operation since January 2014. This study seeks to gauge the effectiveness of the GSP-Plus scheme. It evaluates whether or not GSP-Plus has been effective in stimulating the exports of Pakistan to the EU. The study uses exports data of plastic, leather, textile and footwear from Pakistan to 28 EU member countries. From an econometric perspective, taking unobservable country heterogeneity and zero trade flow, we have used a definite measure of margin of preference to measure the effectiveness of GSP-Plus. We have used Poisson-Pseudo Maximum Likelihood (PPML) and Negative Binomial Regression (NBR) estimators. The results obtained revealed that GSP-Plus scheme has been effective in stimulating the exports of Pakistan.

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Published

2024-11-17

How to Cite

Sartaj Ali, Nadeem Iqbal, & Aisha Rehman. (2024). Analyzing the Impact of European Generalized System of Preferences (GSP) Plus Scheme on the Exports of Pakistan using a Gravity Model. The Journal of Research Review, 1(04), 152–161. Retrieved from https://thejrr.com/index.php/39/article/view/41

Issue

Vol. 1 No. 04 (2024): The Journal of Research Review (Oct-Dec)

Section

Articles