The International Development of India and Pakistan
This paper attempts to review briefly what other economists have already written about the international trade of India and Pakistan, to raise some questions which may suggest further empirical work, and to make some assertions for which I cannot now cite any reference. Section I briefly discusses the import policies of India and Pakistan. Section II examines the exports of India and Pakistan to the rest of the world, and section III deals with the benefits to each country of increased trade between them.2 I ignore the international movement of people and of capital. 1950 and 1967, and the index of export prices of the industrial countries rose by 1¸5 per cent per year in the same period: International Financial Statistics. If one knew the appropriate exchange rate over time, one could compare directly the ratio of imports to G.N.P. over time in India and Pakistan.
KeywordsCotton Textile Trade Liberalisation Custom Union Import Substitution Total Import
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- 4.For a study of this factor in Pakistan’s development, see Stephen R. Lewis Jr, ‘Effects of Trade Policy on Domestic Relative Prices: Pakistan, 1951–64’, American Economic Review, LVIII (Mar 1968) 60–78.Google Scholar
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- 5.Henry Bruton, ‘Productivity Growth in Latin America’, American Economic Review, LVII (Dec 1967) 1099–1116Google Scholar
- 3.‘The history of India at all times has provided an example of a country impoverished by a preference for liquidity amounting to so strong a passion that even an enormous and chronic influx of the precious metals has been insufficient to bring down the rate of interest to a level which was compatible with the growth of real wealth’: J. M. Keynes, The General Theory of Employment, Interest and Money (London: Macmillan, 1936) p. 337.Google Scholar
- 6.Manmohan Singh, India’s Export Trends and the Prospects for Self-Sustained Growth (Oxford: Clarendon Press, 1964)Google Scholar
- 1.In 1948–9, India accounted for 80 per cent of East Pakistan’s foreign trade and 53 per cent of West Pakistan’s foreign trade: M. Akhlaqur Rahman, Partition, Integration, Economic Growth and Interregional Trade (Karachi: Institute of Development Economics, 1963) p. 88.Google Scholar