Cotton Export Potential: A Case Study of Pakistan

Abstract

The study highlights the issues of export potential faced by Pakistan’s cotton industry regarding the competitiveness in the international perspective. The methodology of Balassa’s Revealed Comparative Advantage is used to determine the comparative advantage at 3-digit level of Standard International Trade Classification using United Nation Commodity Trade Statistics of Import and Export. The paper discusses the changing patterns of the Pakistan’s cotton trade with its comparison with the world. In the end analysis of the recent years shows that, especially the time period from 2002 to 2012. The study indicates that if government does not make major changes to increase the cotton yield this sector will lose its potential beyond repair and Pakistan will lose a great source of income. Study suggests that there is need to strengthen the competitiveness of cotton by exports encouraging trade policy, research and development in cotton production and proactive disaster management policy.

Keywords: Trade, Revealed comparative advantage, Exports, Agriculture.