THE IMPACT OF TARIFFS ON PRODUCTIVITY OF PAKISTAN’S TEXTILE INDUSTRY

Trade liberalization by reducing tariff barriers has enhanced industrial productivity as well as raised global economy. But open trade impact was different on developed as compare to developing countries. In this study impact of trade barriers in terms of tariff peaks, tariff escalation and tariff rate quota, by the developed countries, on export performance of the textile industry of Pakistan were empirically evaluated. A model was formulated which represented tariff peaks, tariff escalation, tariff rate quota and export performance as variables.