SPATIAL PATTERNS OF REVEALED COMPARATIVE ADVANTAGE OF PAKISTAN’S AGRICULTURAL EXPORTS

Pakistan is widely believed to be underperforming as far as its agricultural export potential is concerned. However, analyses to support this allegation are very few, in part due to the lack of easily accessible data. By using a detailed data set on country level trade flows and adapting Balassa’s concept of revealed comparative advantage to regional context, this study attempts to fill this knowledge gap. Revealed comparative advantage indices for a fairly wide range of Pakistan’s agricultural exports to several regional markets and country markets are presented. Unlike earlier analyses that looked at the world market only, analysis of spatial patterns of revealed comparative advantage offers new insights. Several product and region combinations are identified where Pakistan has demonstrated comparative advantage despite not enjoying such advantage at the world level. In addition, the analysis highlights opportunities in bilateral trade, especially in trade with neighbours. Finally, the approach identifies top export markets for Pakistan’s main exports, and sheds light on the types of agricultural products from Pakistan that have the potential for penetrating the markets in developed countries.