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Some Price And Non-Price Factors Affecting Imports In Pakistan

Author

Listed:
  • Muhammad Shahid HASSAN*
  • Ayesha WAJID*
  • Qazi Muhammad IRFAN*
  • Muhammad Naveed TAHIR*
  • Noman ARSHED*

Abstract

This study explores the price and non-price factors which affect the real imports in Pakistan. It considers the Bounds Testing Approach to investigate co-integration between the real imports and its factors in the long-run; and the Error Correction Model based on Bounds Testing Approach in order to find the impact of price and non-price factors on imports in the short-run, respectively. The findings reveal that real exchange rate per capita GDP, rural population, urban population, and money supply are among important factors which significantly accelerate the real imports in Pakistan, whereas, the domestic inflation have found to be depressing force for real imports. Moreover; the coefficients of factors of real imports were to be structurally stable for the selected sample period. Finally, the study suggests that it may not be appropriate to use the exchange rate policy from the perspective of imports to improve trade balance in Pakistan.

Suggested Citation

  • Muhammad Shahid HASSAN* & Ayesha WAJID* & Qazi Muhammad IRFAN* & Muhammad Naveed TAHIR* & Noman ARSHED*, 2014. "Some Price And Non-Price Factors Affecting Imports In Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 24(2), pages 159-177.
    • Handle: RePEc:pje:journl:article14winiii
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    References listed on IDEAS

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    Cited by:

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    2. Chen, Shengming & Hassan, Muhammad Shahid & Latif, Ayesha & Rafay, Abdul & Mahmood, Haider & Xu, Xiaowei, 2023. "Investigating resource curse/blessing hypothesis: An empirical insights from Luxembourg, the Netherlands, and Portugal economies," Resources Policy, Elsevier, vol. 83(C).
    3. Gao, Jinchao & Hassan, Muhammad Shahid & Kalim, Rukhsana & Sharif, Arshian & Alkhateeb, Tarek Tawfik Yousef & Mahmood, Haider, 2023. "The role of clean and unclean energy resources in inspecting N-shaped impact of industrial production on environmental quality: A case of high polluting economies," Resources Policy, Elsevier, vol. 80(C).
    4. Noman Arshed & Muhammad Shahid Hassan & Muhammad Umair Khan & Arslan Arif Uppal, 2022. "Moderating Effects of Logistics Infrastructure Development and Real Sector Productivity: A Case of Pakistan," Global Business Review, International Management Institute, vol. 23(3), pages 676-693, June.

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