Abstract

Liberalization of trade and capital market are two leading kind of liberalization. Trade Liberalization can raise exports by falling tariffs. Its rises the economic development by invest in those areas where a solid comparative advantage occurs to rise the efficiency of these areas. liberalization of trade maybe helpful for a country by using three methods, find the solid comparative advantage areas, rise the efficiency of these areas that is consuming RCA and builds a center of attention for investment.

Present study endeavors to assess the comparative advantage of Pakistan’s exports to United Sates of America. Generally comparative advantage is an important concept for explaining pattern of international trade. Aim of the study is to check out that in how many product categories Pakistan has RCA and from these how many able to export to USA. Revealed Comparative Advantage Balassa Index (1965) over the sample of 961 Product categories have been taken with the time Spain 2001-2016. Data took from the website of Un-Com Trade. Results revealed that Pakistan has a comparative advantage in 29 product categories and from these 29 products Pakistan able to export 26 products to United States of America because United States of America has comparative disadvantage in these 26 product categories.