Aggregate Import Demand Function: Empirical Evidence from Bonds Testing Approach in Case of Pakistan 1972-2006

Authors

  • Bashir Ahmed Fida
  • Shabir Mohsin Hashmi

Keywords:

Import demand function, Bounds test, Pakistan.

Abstract

The paper re-estimates the traditional aggregate demand function for Pakistan by employing Bounds test (ARDL) on the annual data for the period of 1972 to 2006. The study examines the long-run relationship among the import demand, real income, and relative price. The estimated results of the Bounds test (Pesaran at al. 2001) corroborate the existence of co-integration relationship among the relevant variables over the sample period. Stability tests demonstrate that import demand function is stable. Overall results exhibit that import demand function is even and suitable for the policy implications.

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Published

2021-02-03

Issue

Vol. 37 No. 1 (2007): Grassroots

Section

Articles

License

The Editor and the Sub-Editor share no responsibility regarding the views and opinions expressed by the authors. Articles published in the Biannual Research Journal Grassroots can be quoted or reproduced after acknowledgment.