IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Industrial Sector Input Demand Responsiveness and Policy Interventions

Listed author(s):
  • Muhammad Ali Chaudhary

    (Quaid-i-Azam University, Islamabad.)

  • Eatzaz Ahmad

    (Quaid-i-Azam University, Islamabad.)

  • Abid A. Burki

    (Quaid-i-Azam University, Islamabad.)

  • Mushtaq A. Khan

    (Quaid-i-Azam University, Islamabad.)

Registered author(s):

    In Pakistan, government intervention in the input market of the industrial sector is considerable. It regulates prices of virtually all energy and certain other non-labour inputs. To stimulate industrial production and output growth, it also encourages the provision of extended credit facilities to the industrial producers. Further, it has also often announced adjustments/reductions in duties and tariffs on products used in industrial production. Conversely, government also imposes taxes on outputs. It may desire to levy new taxes on the industrial inputs. All interventions have profound implications for producers, consumers and the government alike. Therefore, it is important to know how they may affect the industrial input demand. Further, it is equally important to know how effective they may be for the government in the realisation of its objectives. The most pertinent approach to ascertain the industrial input demand responsiveness to government interventions is to obtain valid estimates of price elasticities. In fact, competent elasticity estimates of the producer input demand derived with a sound methodology can serve as a solid basis to predict producer responsiveness to market changes and thereby the effectiveness and desirability of government interventions. While the price elasticities of products over the years have been estimated for Pakistan, renewed interest on estimating responsiveness of producer input demand with modern estimation procedures has recently surged. Idrees (1997) and Khan (1998) have determined elasticities for the domestic large-scale manufacturing sector from a demand system. Although these research studies make a good addition to the literature, their scope is extremely limited because they have combined industrial inputs into large aggregates. At present, there is no study that has investigated the input demand elasticities of the domestic industrial sector at the dis-aggregated level.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 38 (1999)
    Issue (Month): 4 ()
    Pages: 1083-1100

    in new window

    Handle: RePEc:pid:journl:v:38:y:1999:i:4:p:1083-1100
    Contact details of provider: Postal:
    P.O.Box 1091, Islamabad-44000

    Phone: (92)(51)9248051
    Fax: (92)(51)9248065
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. McFadden, Daniel, 1978. "Cost, Revenue, and Profit Functions," Histoy of Economic Thought Chapters,in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 1 McMaster University Archive for the History of Economic Thought.
    2. A. R. Kemal, 1976. "Sectoral Growth Rates and Efficiency of Factor Use in Large-Scale Manufacturing Sector in West Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 15(4), pages 349-381.
    3. Browning, Martin & Deaton, Angus & Irish, Margaret, 1985. "A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle," Econometrica, Econometric Society, vol. 53(3), pages 503-543, May.
    4. A. R. Kemal, 1981. "Substitution Elasticities in the Large- Scale Manufacturing Industries of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 20(1), pages 1-36.
    5. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    6. Sohail J. Malik & Mohammad Mushtaq & Hina Nazli, 1989. "An Analysis of Production Relations in the Large-scale Textile Manufacturing Sector of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 28(1), pages 27-42.
    7. Diewert, W. E., 1973. "Functional forms for profit and transformation functions," Journal of Economic Theory, Elsevier, vol. 6(3), pages 284-316, June.
    8. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:38:y:1999:i:4:p:1083-1100. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.