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Determining Import Intensity of Exports for Pakistan

Author

Listed:
  • Sadia Bader

    (State Bank of Pakistan)

Abstract

This study provides empirical evidence in support of the hypothesis that imports of intermediate and capital goods are critical inputs in the export production of the country. Thus, any short-run divergence in trade balance due to these would lead to higher exportable surplus in the long-run. In this context, the study estimates a semi-reduced export equation, for a sample of 1973-2005 annual data, through Ordinary Least Square method. The results indicate that in Pakistan’s case, there is a long-run relation between exports and imports of intermediate and capital goods.Length: 22 pages

Suggested Citation

  • Sadia Bader, 2006. "Determining Import Intensity of Exports for Pakistan," SBP Working Paper Series 15, State Bank of Pakistan, Research Department.
    • Handle: RePEc:sbp:wpaper:15
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    File URL: http://www.sbp.org.pk/repec/sbp/wpaper/wp15.pdf
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    References listed on IDEAS

    as
    1. Khan, Mohsin S & Knight, Malcolm D, 1988. "Import Compression and Export Performance in Developing Countries," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 315-321, May.
    2. Minoas Koukouritakis, 2004. "EU Accesssion effects on Trade Flows: The Case of Greece," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 2(2), pages 61-79.
    3. Zeshan Atique & Mohsin Hasnain Ahmad, 2003. "The Supply and Demand for Exports of Pakistan: The Polynomial Distributed Lag Model (PDL) Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 961-972.
    4. M. Aynul Hasan & Ashfaque H. Khan, 1994. "Impact of Devaluation on Pakistan's External Trade: An Econometric Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(4), pages 1205-1215.
    5. 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.
    6. Manuchehr Irandoust & Johan Ericsson, 2004. "Are Imports and Exports Cointegrated? An International Comparison," Metroeconomica, Wiley Blackwell, vol. 55(1), pages 49-64, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Sara Rafiq & Liu Hai Yun & Gulzar Ali, 2016. "Forecasting the Trend Analysis of Trade Balance of Pakistan: A Theoretical and Empirical Investigation," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(7), pages 188-214, July.
    2. Muhammad Munwar Hayat & Raheela Khatoon, 2021. "Determinants of Basmati Exports from Pakistan: A Panel Data Analysis," Journal of Economic Impact, Science Impact Publishers, vol. 3(1), pages 12-18.
    3. Devi Setyorini & Budiono, 2020. "The Impact of Tariff and Imported Raw Materials on Textile and Clothing Export: Evidence from the United States Market," Working Papers in Economics and Development Studies (WoPEDS) 202004, Department of Economics, Padjadjaran University, revised Jan 2020.
    4. Ali Farhan Chaudhry & Abdul Rauf Butt & Muhammad Irfan Chani, 2017. "Long-Run Relationship between Exports and Imports of Pakistan," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(8), pages 204-211, August.
    5. Kalsoom Zulfiqar & Rukhsana Kausar, 2012. "Trade Liberalization, Exchange Rate And Export Growth In Pakistan," Far East Journal of Psychology and Business, Far East Research Centre, vol. 9(3), pages 32-47, November.
    6. Muhammad Omer & Junaid Kamal & Jakob Haan, 2023. "Does an exchange rate depreciation improve the trade balance of Pakistan?," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 163-185, February.
    7. Hafsa Hina, 2020. "Correction of Trade Deficit through Depreciation - A Misdirected Policy: An Empirical Evidence from Pakistan," PIDE-Working Papers 2020:24, Pakistan Institute of Development Economics.
    8. Mahmood, Asif & Zahoor, Muhammad Awais, 2021. "Role of Global Value Chains and Exchange Rate: An Empirical Examination in case of Pakistan," MPRA Paper 115958, University Library of Munich, Germany.

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    More about this item

    Keywords

    Export; Imports; Intermediate Goods; Semi-reduced Function; Pakistan;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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