Import Demand, Economic Development and Trade Liberalization in Pakistan: An Empirical Analysis

Authors

  • Muhammad Wasif Siddiqi Visiting Professor, GCU, Lahore, Pakistan Author
  • Amjad Ali Ph. D Scholar, National College of Business Administration and Economics (NCBA&E), Lahore, Pakistan Author
  • Muhammad Irfan Chani Assistant Professor and HOD Economics, The University of Lahore, Pakpattan, Pakistan Author

Keywords:

import demand, trade liberalization,, economic development, price, Pakistan

Abstract

This study empirically investigates the effects of trade liberalization and economic development on income and price elasticities of import demand in Pakistan. The data used for empirical analysis covers the period of 1972 to 2009. Johanson co-integration test is used to confirm the equilibrium relationship among the variables included in the study. The short run dynamics are estimated through Vector Error Correction Mechanism. The results indicate that trade liberalization in Pakistan positively influences income elasticity of import demand. Similarly, price elasticity of import demand in Pakistan is positively related to level of economic development in the country.

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Published

2014-06-30

Issue

Vol. 3 No. 2 (2014)

Section

Articles

How to Cite

Siddiqi, M. W. ., Ali, A. ., & Chani, M. I. . (2014). Import Demand, Economic Development and Trade Liberalization in Pakistan: An Empirical Analysis. Bulletin of Business and Economics (BBE), 3(2), 131-141. https://bbejournal.com/BBE/article/view/209