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Disaggregated Import Demand Functions for Pakistan

Author

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  • KHWAJA SARMAD

    (Pakistan Institute of Development Economics, Islamabad)

  • RIAZ MAHMOOD

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

This paper estimates demand elasticities of relative prices and, those with respect to the activity variable for selected imports of Pakistan at different levels of aggregation for the 1969-70 - 1983-84 period. The relative price elasticities, adjusted for tariffs, are found to be quite small and distinctly different from those estimated for developed countries. Elasticities with respect to the activity variable are on the higher side which may reflect the increased outward orientation of the economy dwing this period. We have also found evidence which supports the argument that import substitution of consumer and capital goods has led to increased import dependence on inputs.

Suggested Citation

  • Khwaja Sarmad & Riaz Mahmood, 1987. "Disaggregated Import Demand Functions for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(1), pages 71-80.
    • Handle: RePEc:pid:journl:v:26:y:1987:i:1:p:71-80
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    File URL: http://www.pide.org.pk/pdf/PDR/1987/Volume1/71-80.pdf
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    Cited by:

    1. Nasir Iqbal & Ejaz Ghani & Musleh ud Din, 2014. "Pakistan’s Dependency on Imports and Regional Integration," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(Special E), pages 395-409, September.
    2. Abdul Rashid & Tayyaba Razzaq, 2013. "An Estimation of Structural Import Demand Function for Pakistan," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 156-175.
    3. Sajjad Akhtar & Fauzia Malik, 2000. "Pakistan’s Trade Performance vis-à-vis Its Major Trading Partners," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(1), pages 37-50.

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