Abstract:
International trade is crucial for global economic growth as it provides countries with access to
new markets and opportunities for efficiency improvements. Despite efforts to liberalize trade,
trade costs continue to act as barriers to competitive trade. This dissertation comprises three essays
that analyze bilateral trade costs, investigate their causes, and assess trade facilitation measures
within Pakistan. The first essay uncovers persistent trade challenges in Pakistan, including non tariff barriers, infrastructure issues, exchange rate vulnerability, transportation obstacles, and
uncertainty regarding time delays, all of which hinder export growth. The second essay reveals
high sectoral-level trade costs in agriculture and manufacturing compared to trading partners.
Empirical findings indicate that implementing measures from the World Trade Organization's
Trade Facilitation Agreement can reduce these costs at the sectoral level. The third essay identifies
regularity barriers contributing to rising trade costs in the service sector. It emphasizes the
necessity of implementing measures like liberalization and trade facilitation to reduce these costs
and stimulate growth in services exports. This research offers valuable insights into reducing the
costs of trade barriers and enhancing export competitiveness in Pakistan.
