Import elasticity of tea: a case of Pakistan
AbstractPakistan is second largest importer of tea. It is based on the fact that negligible part of the consumption of tea is produced domestically. The import analysis of tea is significant to check the import bill. The paper empirically investigated the determinants of import of tea using annual time series data for the years 1977-2009 at the national level. We find that import of tea is positively influenced by GDP, domestic tea consumption and human population. While the domestic price of the tea and import duty on tea negatively impacts the import of tea. The findings indicate that import of tea cannot be significantly controlled by adjusting the variables of domestic price and import duty on tea. The point to the need for the policy makers is to decrease the import bill by changing the consumption behavior of the people and introducing the substitutes of tea which are domestically available.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 34793.
Date of creation: 2011
Date of revision:
Imports; Pakistan; Tea; International Trade;
Find related papers by JEL classification:
- P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Business, and Aid
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-13 (All new papers)
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