An Estimation of Structural Import Demand Function for Pakistan
An Estimation of Structural Import Demand Function for Pakistan
Author(s): Abdul Rashid, Tayyaba RazzaqSubject(s): Economy
Published by: Институт за икономически изследвания при Българска академия на науките
Keywords: JEL: F14; O16
Summary/Abstract: This paper estimates the structural import demand function for Pakistan using a theoretical framework developed by Emran and Shilpi (2010). ARDL and DOLS techniques are used to estimate the log-run price and income elasticities. The results of cointegration analysis provide strong evidence of the existence of a long-run stable relationship among the variables included in the model. The estimates for price and income elasticity have correct sign and are statistically significant. The coefficient of scarcity premium variable is negative and statistically significant, indicating a binding foreign exchange constraint on imports in Pakistan for pre-trade liberalization period.
Journal: Икономически изследвания
- Issue Year: 2013
- Issue No: 2
- Page Range: 156-175
- Page Count: 20
- Language: English