Skip to main content
SpringerLink
Log in

Pakistan-India Bilateral Trade in Sports Goods Sector

  • Chapter
  • First Online:
India-Pakistan Trade

Abstract

Using the gravity model to estimate the trade flows for the major trading partners of Pakistan and India in the sports goods sector, we find, as expected, that the distance between the two countries has a negative impact on exports, while the exporter and importer GDPs affect exports positively. For Pakistan and India, specifically, we find that trade between Pakistan and India is 288 % lower (according to the pooled OLS) and 249 % lower (according to random effects model) than trade between any two similar countries. The trade that is already taking place between the sports goods sectors of the two countries is in accordance with their revealed comparative advantage. However, there is a need for the two countries to export sports goods in which they have higher RCAs. We also found that both countries export the same product lines, so there is a need for further disaggregated analysis within product lines. When we calculated the trade concentration index, we found that Pakistan’s exports to India have become more diversified, but Indian exports to Pakistan are more concentrated in terms of product lines. We also found evidence for the presence of both inter- and intra-industry trade in the sports goods sector of Pakistan.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    The complete list of HS codes used for the sports goods sector can be found in the Appendix.

  2. 2.

    Figures on exports of Pakistan (Fig. 9.3) and India (Fig. 9.4) for a more extended period are available in the Appendix.

References

  • Anderson JA (1979) A theoretical foundation for the gravity equation. Am Econ Rev 69:106–116

    Google Scholar 

  • Bacchetta M, Beverelli C, Cadot O, Fugazza M, Grether J, Helble M, Nicita A, Piermartini R (2012) A practical guide to trade policy analysis. United Nations, New York; World Trade Organization, Geneva

    Google Scholar 

  • Bandara JS, Yu W (2003) How desirable is the South Asian free trade area? A quantitative economic assessment. World Econ 26(9):1293–1323

    Article  Google Scholar 

  • Batra A (2006) India’s global trade potential: the gravity model approach. Glob Econ Rev 35(3):327–361

    Article  Google Scholar 

  • Batra A, Khan Z (2005) Revealed comparative advantage: an analysis for India and China. ICRIER Working Paper no. 168. Indian Council for Research on International Economic Relations, New Delhi

    Google Scholar 

  • Bergstrand JH (1985) The gravity equation in international trade: some microeconomic foundations and empirical evidence. Rev Econ Stat 67(3):474–481.

    Article  Google Scholar 

  • Christie E (2002) Potential trade in south-east Europe: a gravity model approach. South East Eur Rev Lab Soc Aff 4:81–102

    Google Scholar 

  • De P, Raihan S, Ghani E (2013) What does MFN trade mean for India and Pakistan? Can MFN be a Panacea? Policy research working paper 6483

    Google Scholar 

  • Deardorff A (1998) Determinants of bilateral trade: does gravity work in a neoclassical world? In: Frankel JA (ed) The regionalization of the world economy. University of Chicago Press, Chicago, pp 7–28

    Google Scholar 

  • DTI (Department of Trade and Industry) (2005) A gravity model for the determination and analysis of trade potential for South Africa. http://www.thedti.gov.za/stats/Gravity.pdf. Accessed 2 Mar 2013

  • Frankel J, Shang-Jin Wei (1993) Trade blocs and currency blocs. NBER Working Paper no. 4335. National Bureau of Economic Research, Cambridge, MA

    Google Scholar 

  • Grubel HG, Lloyd PJ (1975) Intra-industry trade. Macmillan, London

    Google Scholar 

  • Helpman E (1984) A simple theory of international trade with multinational corporations. J Polit Econ 92(3):451–471

    Article  Google Scholar 

  • Jordaan AC, Eita JH (2011) Identifying South Africa’s wood exports potential using a gravity model. Int Proc Econ Dev Res 3:159–164

    Google Scholar 

  • Khan SR (2005) Can illegal trade between Pakistan and India be eliminated? SDPI Res News Bull 12:3

    Google Scholar 

  • Latruffe, L. (2010). Competitiveness, productivity and efficiency in the agricultural and agri-food sectors. OECD Food, Agriculture and Fisheries Papers no. 30, OECD Publishing, Paris. Available http://dx.doi.org/10.1787/5km91nkdt6d6-en. Accessed 29 Jan 2013

  • Nabi I, Nasim A (2001) Trading with the enemy: a case for liberalizing Pakistan-India trade. In: Lahiri S (ed) Regionalism and globalization: theory and practice. Routledge, London, pp 170–198

    Google Scholar 

  • Naqvi ZF, Schuler P (eds) (2007) The challenges and potential of Pakistan-India trade. The World Bank, Washington, DC

    Google Scholar 

  • Oguledo VI, Macphee CR (1994) Gravity models: a reformulation and an application to discriminatory trade arrangements. Appl Econ 26:107–120

    Article  Google Scholar 

  • Qamar A (2005) Trade between India and Pakistan: potential items and the MFN status. SBP Res Bul 1, 1 (Pakistan)

    Google Scholar 

  • Rahman M (2003) A panel data analysis of Bangladesh’s trade: the gravity model approach., Available at http://www.etsg.org/ETSG2003/papers/rahman.pdf

  • Rasheed T (2012) Implications of liberalizing trade and investment with India. State Bank of Pakistan, Karachi

    Google Scholar 

  • Soesastro H (2005) Accelerating ASEAN economic integration: moving beyond AFTA., Available at http://www.eaber.org/sites/default/files/documents/CSIS_Soesastro_2005_3.pdf

  • State Bank of Pakistan (2006) Implications of liberalizing trade and investment with India, Research and Economic Policy Department report

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, Lahore University of Management Sciences (LUMS), Lahore, Pakistan

    Farah Shahid Hassan, Kiran Javaid & Hadia Majid

Authors
  1. Farah Shahid Hassan
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kiran Javaid
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Hadia Majid
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Farah Shahid Hassan .

Editor information

Editors and Affiliations

  1. Indian Council for Research on International Economic Relations, New Delhi, India

    Nisha Taneja

  2. CSIR–National Institute of Science, Technology and Development Studies, New Delhi, India

    Sanjib Pohit

Appendix

Appendix

9.1.1 HS Code Description

9.1.1.1 Sports Equipment

  • 9506 Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table tennis) or outdoor games, N.E.S. swimming pools and paddling pools

  • 950611 Snow skis and other snow ski equipment, except ski poles

  • 95061100 Skis

  • 950612 Snow ski bindings or ski fastenings

  • 95061200 Ski fastenings (ski bindings)

  • 950619 Other snow ski equipment

  • 95061900 Other snow ski equipment

  • 950621 Sailboards

  • 95062100 Sailboards

  • 950629 Water skis, surfboards, and other water sports equipment, except sailboards

  • 95062900 Other

  • 950631 Golf clubs, complete

  • 95063100 Clubs, complete

  • 950632 Golf balls

  • 95063200 Golf balls

  • 950639 Golf equipment (except complete clubs and balls)

  • 95063900 Other

  • 950640 Articles and equipment for table tennis

  • 95064000 Articles and equipment for table tennis

  • 950651 Tennis rackets, whether or not strung

  • 95065100 Lawn tennis rackets, whether or not strung

  • 950659 Tennis, badminton, and similar rackets, whether or not strung

  • 95065910 Squash or racket ball badminton rackets, whether or not strung

  • 95065990 Other rackets

  • 950661 Lawn tennis balls

  • 9506100 Lawn tennis balls

  • 950662 Inflatable balls

  • 95066210 Footballs

  • 95066220 Volleyballs

  • 95066230 Basketballs

  • 95066290 Others

  • 950669 Other balls

  • 95066910 Hockey balls

  • 95066920 Cricket balls

  • 95066930 Golf balls

  • 95066940 Rugby balls

  • 95066990 Others

  • 950670 Ice skates and roller skates, including skating boots with skates attached

  • 95067000 Ice skates and roller skates, including skating boots with skates attached

  • 950691 Articles and equipment for general physical exercise, gymnastics, or athletics

  • 95069110 Boxing equipment

  • 95069190 Other gymnastics/athletics equipment

  • 950699 Articles and equipment for outdoor sports

  • 95069910 Badminton shuttlecocks

  • 95069920 Leg pads and bats for cricket

  • 95069930 Shoulder pads for football

  • 95069940 Hockey sticks and blades

  • 95069950 Polo sticks including blades, shafts, and heads

  • 95069960 Sports nets

  • 95069970 Tennis and badminton racket pressures

  • 95069980 Shin/protective guards and elbow or shoulders pads excluding those for football; waist, thigh, and hip protective equipment

  • 95069990 Other sports equipment

  • 9507 Fishing rods, fishhooks, and other line fishing tackle, fish landing, and similar nets; decoy “birds” (other than those of heading 9208/9705) and similar hunting requisites

  • 950710 Fishing rods

  • 95071000 Fishing rods

  • 950720 Fishhooks, whether or not snelled

  • 95072000 Fishhooks, whether or not snelled

  • 950730 Fishing reels

  • 95073000 Fishing reels

  • 950790 Other fishing and hunting requisites

  • 95079010 Fishing landing and butterfly nets

  • 95079090 Others

9.1.1.2 Sports Apparel

  • 4203 Articles of apparel and clothing accessories of leather or of composition leather

  • 420321 Sports gloves – mittens and mitts

  • 42032110 Gloves for sports

  • 42032120 Mittens and mitts for sports

  • 6112 Tracksuits, ski suits, swimwear – knitted or crocheted

  • 611211 Tracksuits of cotton, knitted

  • 61121100 Tracksuits of cotton

  • 611212 Tracksuits of synthetic fibers, knitted

  • 61121200 Tracksuits of synthetic fibers

  • 611219 Tracksuits of other textile materials, knitted

  • 61121910 of silk

  • 61121920 of wool or fine animal hair

  • 61121930 of artificial fibers

  • 61121990 Other fibers

  • 611220 Ski suits, knitted

  • 61122010 of silk

  • 61122020 of wool or fine animal hair

  • 61122030 of cotton

  • 61122040 of synthetic fibers

  • 61122050 of artificial fibers

  • 61122090 Other fibers

  • 611231 Men’s/boys’ swimwear of synthetic fibers, knitted

  • 61123100 of synthetic fibers

  • 611239 Men’s/boys’ swimwear of other textile materials, knitted

  • 61123910 of silk

  • 61123920 of artificial fibers

  • 61123990 Other fibers

  • 611241 Women’s/girls’ swimwear of synthetic fibers, knitted

  • 61124100 of synthetic fibers

  • 611249 Women’s/girls’ swimwear of other textile materials, knitted

  • 61124910 of silk

  • 61124920 of artificial fibers

  • 61124990 Other fibers

  • 6211 Tracksuits, ski suits, swimwear, not knitted

  • 621111 Swimwear for men or boys, not knitted

  • 62111100 Swimwear for men or boys

  • 621112 Swimwear for women or girls, not knitted

  • 62111200 Swimwear for women or girls

  • 621120 Ski suits, not knitted

  • 62112000 Ski suits

9.1.1.3 Sports Footwear

  • 6402 Other footwear with outer soles and uppers of rubber or plastic

  • 640212 Ski boots, cross-country ski footwear, and snowboard boots

  • 64021210 of rubber

  • 64021290 of other materials

  • 640219 Other sports footwear with outer soles and upper of rubber/plastic

  • 64021910 of rubber

  • 64021990 Other

  • 6403 Footwear with outer soles of rubber, plastic, leather, or composition leather and uppers of leather

  • 640312 Ski boots and cross-country ski footwear and snowboard boots

  • 64031200 Ski boots, cross-country ski footwear, and snowboard boots

  • 640319 Footwear with outer soles of rubber, plastic, with uppers of leather

  • 64031910 Other sports footwear with outer soles of leather

  • 64031920 Other sports footwear with outer soles of rubber

  • 6404 Footwear with outer soles of rubber, plastic, etc., and uppers of textile materials

  • 640411 Sports footwear, tennis shoes, basketball shoes, gym shoes, training shoes, etc., with outer soles of rubber/plastic

  • 64041110 of rubber sole with canvas upper

  • 64041120 of rubber sole with leather cloth uppers

  • 64041190 Other (Appendix)

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Indian Council for Research on International Economic Relations (ICRIER)

About this chapter

Cite this chapter

Hassan, F.S., Javaid, K., Majid, H. (2015). Pakistan-India Bilateral Trade in Sports Goods Sector. In: Taneja, N., Pohit, S. (eds) India-Pakistan Trade. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1949-1_9

Download citation

Publish with us

Policies and ethics

Search

Navigation