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Price and Income Elasticity of Imports: The Case of Pakistan

Author

Listed:
  • Khurram Ashfaq Baluch

    (State Bank of Pakistan)

  • Syed Kalim Hyder Bukhari

    (State Bank of Pakistan)

Abstract

The paper estimates the elasticity of Imports with respect to relative prices and income for Pakistan from 1971 to 2009. What distinguishes this paper from the earlier studies is the use of robust estimation technique of Autoregressive Distributed Lag (ARDL) model utilizing the bounds test procedure. The results point to cointegration among the variables. The estimated long run elasticity of Imports with respect to relative prices and income are -0.53 and 1.22 respectively. Length: 20 pages

Suggested Citation

  • Khurram Ashfaq Baluch & Syed Kalim Hyder Bukhari, 2012. "Price and Income Elasticity of Imports: The Case of Pakistan," SBP Working Paper Series 48, State Bank of Pakistan, Research Department.
  • Handle: RePEc:sbp:wpaper:48
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    References listed on IDEAS

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    More about this item

    Keywords

    Cointegration; foreign trade; import price;
    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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