Analyzing the Import Demand Function with Expenditure Components: Evidence from Pakistan
Sadaf Majeed () and
Abdul Waheed ()
Transition Studies Review, 2012, vol. 19, issue 2, 245-259
Abstract:
This study highlights the responsiveness of import demand in the context of aggregate expenditure components in Pakistan over the period of 1974–2009. The study uses Johansen multivariate cointegration analysis and estimates an error correction model to drive the long-run and short run elasticities of the import demand behavior. The cointegration results provide a strong empirical validity of the presence of long run elasticities between import and macro-components. In the long-run, the consumption expenditure is the main dominant determinants of the movements in import demand in Pakistan. In the short-run, the consumption and investment expenditures are the major determinants of import demand while the import demand is not sensitive to relative price. Moreover, the parameter stability tests confirm the stability of the model, and the sensitivity analysis confirms the robustness of initial results. Copyright Springer-Verlag Wien 2012
Keywords: Consumption; Imports; Cointegration; E2; F10; F21 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1007/s11300-012-0236-4 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:trstrv:v:19:y:2012:i:2:p:245-259
Ordering information: This journal article can be ordered from
http://www.springer. ... ration/journal/11300
DOI: 10.1007/s11300-012-0236-4
Access Statistics for this article
Transition Studies Review is currently edited by G. Dominese
More articles in Transition Studies Review from Springer, Central Eastern European University Network (CEEUN)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().