Research Article
Samreen Gillani
Abstract
The study investigates the effects of Preferential Trade Agreement on Intra Industry trade for over the period 1990-2015. This paper addresses and resolves econometric problems by employing proper specification of gravity model of trade with panel data, taking into account for self- selection. Results show that trade agreements of Pakistan increases its intra industry trade, although there are exceptions. The differences in performances may be related to the design and enforcement mechanism of trade agreements.