Exploring Recent Developments in Determinants of Intra Industry Trade in Pakistan: A Case Study of Pakistan

Abstract

The present study explores the key determinants of intra industry trade in Pakistan by collecting time series data from 1972 to 2014. By utilizing log – log form of the model, the ARDL bound testing approach finalizes long run relationship among all the variables. The long run results reveals that roads, vehicles, gross capital formation, national saving, exchange rate and tax revenue are positively associated with Intra Industry Trade of Pakistan while broad money is negatively related with Intra Industry trade.

Keywords: Roads, Vehicles, Gross Capital Formation, Broad Money, National Saving, Exchange Rate, Tax Revenue, Intra Industry Trade