Analysis of bilateral trade relation between Pakistan and China: An application of trade intensity index approach

This research paper is an attempt to measure the potential of bilateral trade between Pakistan and China from the period 2008 to 2012. For this purpose the author has applied a statistical technique called trade intensity index. The demand of Pakistani products being exported in China has been increasing during 2008 to 2012. On the other hand, this research paper concludes a gradual growth of import intensity of China for its old alley Pakistan. Thus, this study finds trade intensity index is much more than would be expected on the basis of their importance in the world trade.