Effect of Trade Liberalization on Asymmetric Countries for Homogenous and Differentiate Product: Case of Pakistan-China Free Trade Agreement

The study performs an empirical test to assess the impact of Pakistan-China Free trade agreement (FTA) on Pakistan, China, and World's exports under homogenous differentiated products. This employs modeling with Poisson specification Pseudo-Maximum Likelihood method for estimations. results show that effect FTA Non-FTA countries is greater in product as compared product. Therefore, one most important policy implications provided by this export enterprises need concentrate products compare after implementation FTA. Moreover, previous literature concluded was more beneficial China Pakistan. However, according study, if Pakistani focus products, then it will be equally both Chinese enterprises. contribute considering Bertrand competition between asymmetric find out these three countries. It considers Rest World first, second, third