Saturday, February 06, 2010

Country Trade Comparison - Pakistan, India, China

World Bank

Four measures, for the period 2006-2009:

1.
TTRI (MFN applied tariff) - All Goods
Trade Tariff Restrictiveness Index (MFN applied tariff) - All Goods -This indicator reflects the equivalent uniform tariff of a country tariff schedule that would maintain domestic import levels constant.

Lower value/rank closer to 1 means fewer tax & tariff barriers to imports.

Pakistan 12.2 (rank 103)
India 12  (rank 102)
China 5.33 (rank 63)

2.
MA-TTRI (applied tariff incl. prefs.) - All Goods
Market Access -Trade Tariff Restrictiveness Index (applied tariff incl. prefs.) - All Goods - This index reflects the equivalent uniform tariff of trading partners facing the exporter country, that would maintain the imports of the trading partners constant, including preferential tariffs.

Lower value/rank closer to 1 means fewer tax & tariff barriers to exports.

Pakistan 7.26 (rank 117)
India 3.47 (rank 70)
China 3.9 (rank 75)


3.
Ease of Doing Business - Rank
2010 Ease of Doing Business - Rank - This indicator represents a country’s overall business climate based on seven indicators, three of which are also reported in the WTI database: Starting a Business, Enforcing Contracts, and Closing a Business, (1 best -183 worst)

Pakistan rank 85
India rank 133
China rank 89

4.
LPI - Overall
LPI - Overall - This indicator reflects the overall perception of a countrys logistics based on over 1,000 responses to a survey of logistics performance. The overall LPI was aggregated as a weighted average of seven key areas of logistics performance (1 worst -5 best).

Pakistan 2.53 (rank 111)
India 3.12 (rank 47)
China 3.49 (rank 27)

----------

Surprisingly Pakistan is the easiest place to do business.  Either the World Bank is smoking something good, or else Pakistan's political instability and its reputation of being Terrorism Central is eroding its one major competitive advantage.

Also, Pakistan would do well to use its diplomatic capital trying to dismantle barriers to its exports rather than constantly harp on Jammu & Kashmir.