TRADE LIBERALIZATION IMPACT ON PAKISTANâ€™S IMPORT: THE ECONOMETRIC EVIDENCE
Utilizing the alternative econometric tools, this study analyzed for the impact of trade liberalization on Pakistanâ€™s real import demand during the period of 1981-2010. Whereby extend the standard import demand by including import duties ratio and alternative dummies for high liberalization episodes. In results provide new trade elasticity estimates i.e. real income of the country follows by relative import prices largely explains the countryâ€™s demand for imports with expected positive and negative signs respectively. Further, depicts that reforms in trade policy in favour of trade liberalization has encouraged significantly Pakistanâ€™s imports demand during the period.
Afzal, Mohammad. (2001), â€˜Import Function for PakistanÂ¬ï€A Simultaneous Equation Approachâ€, The Lahore Journal of Economics, 6(2), pp. 109-116.
Afzal, M. (2004), â€˜Estimating Long Run Trade Elasticities in Pakistan- Co-integration Approachâ€™, The Pakistan Development Review, 43(4), pp.757-770.
Afzal, M. (2007), â€˜Exchange Rate Response of Import Demand in Pakistan, Sarhad J. Agric. Vol. 23, No. 4, pp. 1181-1186.
Bahmani-Oskooee, M. (1998), â€˜Co-integration Approach to Estimate the Long Run Trade Elasticities in LDCsâ€™, International Economics Journal, 12(3), pp. 89-96.
Baig, M.Q (2009), â€˜Pakistanâ€™s Trade Policy, 1999-2008: An Assessmentâ€™, PIDE Working Paper, 2009: 55.
Chang, T., Ho, Y., and Haung, C. (2005), â€˜A Reexamination of South Koreaâ€™s Import Demand Function: The Bound Test Analysisâ€™, Journal of Economic Development, Vol. 30 (1), pp. 119-128.
Chani, I. M., Pervaiz, A. and Chaudhary, A. R. (2011), â€˜Determination of Import Demand in Pakistan: The Role of Expenditure Componentsâ€™, Theoretical and Applied Economics, Volume XVIII, No. 8(561), pp. 93-110.
Dash, A. K. (2005), â€˜An Econometric Estimation of the Aggregate Import Demand Function for Indiaâ€™, IBRC Athens 2005,
Din, M., E. Ghani and Siddique, O (2003), â€˜Openness and Economic Growth in Pakistanâ€™, The Pakistan Development Review, 24(4), pp. 795-807.
Engle, R.F. and Granger, C.W.J. (1987), â€˜Co-integration and Error Correction: Representation, Estimation and Testingâ€™, Econometrica, 55, pp.251-276.
Felipe, J., McCombie, J. S. L. and Naqvi, K. (2010), â€˜Is Pakistanâ€™s Growth Rate Balance of Payments Constrainedï€¿ Policies and Implications for Development and Growth, Oxford Development Studies, 38(4), pp. 477-496,
Fida, B. A, Khan, M. M, and Sohail, M. K. (2011), â€˜Revisiting Aggregate Import Demand Function in Pakistan using ARDL Methodologyâ€™, American Journal of Scientific Research, Issue 33(2011), pp. 5-12,
Fullerton, T. M., Sawyer, W. C. and Sprinkle, R. L, (1997), â€˜Functional form for United States-Mexico Trade Equationsâ€™, EECO, 12 (1), pp. 23-35.
Goldstein, M. and Khan, M. S. (1985), â€˜Income and Price Effects in Foreign Tradeâ€™, in Constant, N. B. Z. S. and Yue, Y. (2010), â€˜An Econometric Estimation of Import Demand Function for Cote Dâ€™Ivoireâ€™, International Journal of Business and Management, Vol. 5, No. 2, pp. 77-84.
Government of Pakistan, (Various Issues), â€˜Economic Surveyâ€™, Ministry of Finance, Islamabad,
Government of Pakistan (Various Issues), â€˜FBR Year Bookâ€™, Ministry of Commerce, Islamabd,
Ho, W.S. (2004), â€˜Estimating Macaoâ€™s import demand functionsâ€™, monetary authority of Macao,
Khan, Ashfaque, H. (1998), â€˜The Experience of Trade Liberalization in Pakistanâ€™, The Pakistan Development Review, 37: 4, pp. 661-685.
Khan, S., Ali, R. and Shah, M. (2013), â€˜Importâ€™s Price and Income Elasticity Estimates: Reconsidering the Evidence for Pakistanâ€™, Research Journal of Economics and Business Studies, Vol. 2, No. 4, pp. 1-7,
Khan, S. A., Khan, S. and Zaman, K. (2013), â€˜An Estimation of Disaggregate Import Demand Function for Pakistanâ€™, World Applied Sciences Journal, 21 (7), pp. 1050-1056,
Masih, R. & Masih, A. M. M. (2000), â€˜A Re-assessment of long-run elasticities of Japanese Import Demand. Journal of Policy Modeling, 22, 625-639.
Narayan, P.K., (2004), â€˜Reformulating critical values for the bounds F-statistics approach to cointegration: an application to the tourism demand model for Fijiâ€™, Department of Economics Discussion Papers N0.02/04, Monash University, Melbourne.
Nenci, S. and Pietrobelli, C. (2007), â€˜Does Tariff Liberalization Promote Tradeï€¿ Latin America in the Long Run (1900-2000)â€™, CREI Working Paper, No. 4/2007,
Opoku-Afari, M. (2004), â€˜Measuring the Real Effective Exchange Rate (REER) in Ghanaâ€™, CREDIT Research Paper, No. 04/11, University of Nottingham.
Ozturk, I, and Acaravci, A. (2010), â€˜An Application of Thirwallâ€™s Law to the South African Economy: Evidence from an ARDL Bounds Testing Approachâ€™, African Journal of Business Management, Vol.4, pp. 262-266.
Pacheco-Lopez (2003), â€˜The Effect of Trade Reforms on Mexicoâ€™s Importsâ€™, ECOMOD 2003 International Conference in Policy Modeling, July 2003, Istanbul, Turkey.
Pesaran, M.H, Shin, Y. & J. S.R. (2001), â€˜Bound Testing Approaches to the Analysis of Level Relationshipâ€™, Journal of Applied Econometrics, 16, pp. 289-326.
Rehman, H.U. (2007), â€˜An Econometric Estimation of Traditional Import Demand Function for Pakistanâ€™, Pakistan Economic and Social Review, Vol. 45, No. 2, pp. 245-256.
Reinhart, C. (1995)â€™, Devaluation, Relative Prices and International Tradeâ€™, IMF Staff Papers, Vol.42, pp. 290-312.
Santose-Paulino, A. (2001), â€˜The Effects of Trade Liberalization on Imports in Selected Developing Countriesâ€™, World Development, pp. 959-974.
Santose-Paulino, A. and Thirlwall, A. P. (2004), â€˜The Impact of Trade Liberalization on Exports, Imports and the Balance of Payments of Developing Countriesâ€™, The Economic Journal, 114 (Feb), pp. 50-72
Senhadji, A. (1998), â€˜Time Series Estimation of Structural Import Demand Equations: A Cross Country Analysis, IMF Staff Papers, 25(2), pp. 236-268.
Shabir, T. and Mahmood, R. (1991), â€˜Structural Change in the Import Demand Function for Pakistanâ€™, The Pakistan Development Review, Vol. 30, No. 4, pp. 1159-1168.
Shareef, R. and Tran, V. (2007), â€˜An Aggregate Import Demand Function for Australia: A Co-integration Approachâ€™, Working Paper No. 0708, Edit Cowan University.
State Bank of Pakistan, â€˜A Handbook of Statistics, October 2010â€™ SBP,
World Bank, World Development Indicators, (www.databank.worldbank.org)
Wu, Y. and Zeng, L. (2008), â€˜The Impact of Trade
Liberalization on the Trade Balance of Developing Countriesâ€™, IMF Working Paper, WP/08/04.
Yasmin, B., Jehan, Z. and Chaudhary, M. A. (2006), â€˜Trade Liberalization and Economic Development: Evidence from Pakistanâ€™, The Lahore Journal of Economics, 11 (1), pp. 19-34.