Trade Between East and West Pakistan at World Prices, 1960/61-1969/70

G. M. Radhu


The costs and prices of the commodities traded between East
and West Pakistan are an aspect of interwing trade. It has been argued
that domestically produced goods often involved greater costs of
production and higher prices and therefore imports from one region to
the other have been higher priced than similar goods from overseas.
However the extent of the price differential between the domestic and
world market varies from( commodity to commodity because of the unequal
degree of protection or subsidy given by the Government. In other words
the implicit exchange rate is not the same for all commodities and it
differs considerably between different goods.

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