Exploring the Relationship Between Tariff and EXIM of Selected Countries
DOI:
https://doi.org/10.62737/6t42jj07Keywords:
Tariff, International Trade, , Export-Import, EconomyAbstract
This study examines the impact of the Simple Average Tariff Rate (SATR) on the Export-Import Index (EXIM) across five major economies—China, India, Indonesia, Pakistan, and the United States—over a nineteen-year period (2005–2024). Using panel data regression techniques, both Fixed Effects and Random Effects models were applied, with the Random Effects Generalized Least Squares (GLS) model identified as most appropriate based on diagnostic tests. The results reveal a negative but statistically insignificant relationship between tariff rates and EXIM across commercial services, merchandise, and agricultural sectors. This indicates that tariff changes alone do not substantially influence trade balance performance, which is instead shaped by structural, institutional, and macroeconomic factors. The study highlights the diminishing role of traditional tariffs in global trade and emphasizes the importance of innovation, competitiveness, and infrastructure in strengthening export potential. Future research may incorporate non-tariff measures and sector-specific determinants to deepen understanding of trade dynamics.
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