Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062

Conference List

International Journal of Business, Economics and Management

September 2016, Volume 3, 9, pp 113-121

Determinants of Import Demand Functions of Pakistan: An ARDL Bound Testing Approach

Sulaiman D. Muhammad


Saba Zafar

Sulaiman D. Muhammad 1
Saba Zafar 2

  1. FUUAST Karachi 1

  2. Lecturer (Economics) Govt. Deg. Coll. for Women, Blk. M, North Nazimabad, Karachi 2

Pages: 113-121

DOI: 10.18488/journal.62/2016.3.9/

Share :


This study attempts to examine the factors that determine the import demand function of Pakistan using time series data of 1973-2013. Autoregressive Distributed Lag bounds testing approach cointegration is used to determine long run while ECM in ARDL framework to determine short run adjustments. The results showed substantial proof of the existence of a cointegration association at various degrees among variables included in the models.

Contribution/ Originality


Cointegration, Import, Export, Pakistan.



  1. Baluch, K.A. and S.K.H. Bukhari, 2012. Price and income elasticity of imports: The case of Pakistan (No. Id: 4899).
  2. Carporale, G.M. and M.K.F. Chui, 1999. Estimating income and price elasticities of trade in a cointegrating framework. Rev Int Econ, 7(2): 254-264.
  3. Clarida, R.H., 1991. Co-integration, aggregate consumption, and the demand for imports: A structural econometric investigation (No. W 3812). National Bureau of Economic Research.
  4. Fida, B.A., M.M. Khan and M.K. Sohail, 2011. Revisiting aggregate import demand function in Pakistan using ARDL methodology. American Journal of Scientific Research, 33(2011): 5-12.
  5. Fukumoto, M., 2012. Estimation of China's disaggregate import demand functions. China Economic Review, 23(2): 434-444.
  6. Giovannetti, G., 1989. Aggregated imports and expenditure components in Italy: An econometric analysis. Applied Economics, 21(7): 957–971.
  7. Goldstein, M. and M.S. Khan, 1985. Income and price effects in foreign trade. In: R.W. Jones and P.B. Kenen, Editors. Handbook of international economics. New York: Elsevier, 2:  1041–1105.
  8. Kakar, M.K., R. Kakar and W. Khan, 2010. The determinants of Pakistan's trade balance: An ARDL cointegration approach. Lahore Journal of Economics, 15(1): 1-26.
  9. Kalyoncu, H., 2006. An aggregate import demand function for Turkey: A cointegration analysis. Indian Journal of Economics, 343: 1-11.
  10. Moazzami, B. and E. Wong, 1988. Income and price elasticities of China's trade. Asian Economic Review, 1988(30): 218–230.
  11. Pattichis, C.A., 1999. Price and income elasticities of disaggregated import demand: Results from UECMs and an application. Applied Economics, 31(9): 1061-1071.
  12. Pesaran, M.H., Y. Shin and R.J. Smith, 2001. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3): 289-326.
  13. Rashid, A. and T. Razzaq, 2010. Estimating import-demand function in ARDL framework (No. EERI_RP_2010_15). Brussels: Economics and Econometrics Research Institute EERI.
  14. Rehman, H.U., 2007. An econometric estimation of traditional import demand function for Pakistan. Pakistan Economic and Social Review, 45(2): 245-256.
  15. Reinhart, C.M., 1995. Devaluation, relative prices, and international trade: Evidence from developing countries. Staff Papers-International Monetary Fund, 42(2): 290-312.
  16. Rijal, A., R.K. Koshal and C. Jung, 2000. Determinants of Nepalese imports. Journal of Asian Economics, 11(3): 347-354.
  17. Santos-Paulino, A.U., 2002. The effects of trade liberalization on imports in selected developing countries. World Development, 30(6): 959-974.
  18. Sarmad, K. and R. Mahmood, 1987. Disaggregatedd import demand functions for Pakistan. Pakistan Development Review, 26(1): 71-80.
  19. Senhadji, A., 1998. Time-series estimation of structural import demand equations: A cross-country analysis. Staff Papers-International Monetary Fund, 45(2): 236-268.
  20. Tang, T.C., 2002. An aggregate import demand function for Hong Kong, China: New evidence from bounds test. International Journal of Management, 19(4): 561–567.
  21. Tang, T.C., 2003. An empirical analysis China’s aggregate import demand function. China Economic Review, 14(2): 142-163.
  22. Tang, T.C., 2004. A reassessment of aggregate import demand function in the ASEAN-5: A cointegration analysis. International Trade Journal, 18(3): 239-268.
  23. Tsionas, E.G. and D.K. Christopoulos, 2004. International evidence on import demand. Empirica, 31(1): 43-53.
  24. Xu, X., 2002. The dynamic-optimizing approach to import demand: A structural model. Economics Letters, 74(2): 265-270.


Google Scholor ideas Microsoft Academic Search bing Google Scholor


Competing Interests:


Related Article

( 1 ) Determinants of Share Price Movement in Nigeria -The Management Perspective
( 2 ) Determinants of Tax Revenue in Ethiopia (Johansen Co-Integration Approach)
( 3 ) Determinants of Import Demand Functions of Pakistan: An ARDL Bound Testing Approach
( 4 ) Determinants of Rural Residential Solid Waste Collection Services in Lagos State
( 5 ) Determinants of Public Sector Corruption in Nigeria
( 6 ) Determinants of Banks Profitability & Liquidity and the Role of BASEL III in Islamic & Conventional Banking Sector of Pakistan: A Case Study of NBP
( 7 ) Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis
( 8 ) Determinants of Corporate Tax Avoidance Strategies among Multinational Corporations in Malaysia
( 9 ) Determinants of Exchange Rate in Nigeria: A Comparison of the Official and Parallel Market Rates
( 10 ) Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia
( 11 ) Analysis of Credit Ratings Determinants: Evidences in Brazilian and American States
( 12 ) Determinants of Profitability and its Implications on Corporate Values (Studies at Ceramic, Porcelain and Glass Sub Sector Listed in Indonesia Stock Exchange, 2009 - 2018)
( 13 ) Determinants of Firm Profitability: Evidences from Bangladeshi Manufacturing Industry
( 14 ) Importance of Corporate Governance Quality and Voluntary Disclosures of Corporate Governance Information in Listed Malaysian Family Controlled Businesses
( 15 ) Exchange Rate Movements, Import And Economic Growth in Nigeria (1986-2010)
( 16 ) The Impact of Rice Production, Consumption and Importation in Nigeria: The Political Economy Perspectives
( 17 ) Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013
( 19 ) The Importance of Public Administration Towards Achieving Good Governance for Positive National Development by Using SmartPLS 3
( 20 ) Forecasting Prices of Three Important Agricultural Crops in Bangladesh
( 21 ) Structural Breaks and the Long-Run Stability of Demand for Real Broad Money Function in Nigeria: A Gregory-Hansen Approach
( 22 ) Investigating the Demand of Small Hotel and Restaurant Businesses for Bank Financing: The Case of Turkey
( 24 ) The Nexus between Urbanization, Energy Demand and Healthcare in Bangladesh
( 25 ) Impact of Asymmetric Government Spending on Real Balances Demand
( 26 ) German Exports, Economic Growth and Foreign Demand: An Analysis of the Period 2000–2017
( 27 ) Evaluating the Model of Demand for Money in Nigeria
( 29 ) Fiscal Reaction Functions and Public Debt Sustainability in Nigeria: An Error Correction Mechanism Approach
( 33 ) Foreign Capital Inflows and Unemployment in Nigeria: A New Evidence from ARDL-Bounds Testing Approach
( 34 ) Dutch Disease: Myth or Reality? An Analysis of the ARDL Model
( 35 ) Does Corruption Grease or Sand the Wheels of Economic Growth in Ghana? An ARDL Bounds Test
( 36 ) A Review upon the Changes Which Come With the Model upon Turkish Metropolitan Municipality within the Provincial Administrative Boundaries
( 40 ) Testing the Random Walks in Korea Stock Exchange
( 41 ) Testing the Random Walk: The Case of Hong Kong Stock Exchange
( 43 ) Testing the PPP Using Unit Root Tests with Structural Breaks: Evidence from Politically Unstable Arab Countries
( 45 ) Testing the Validity of Gibrats Law in the Context of Profitability and Leverage
( 46 ) Contemporary Approach to Enhanced Road Transport System in Nigeria Through the Application of It-Based (Online) Bus Ticketing and Payment System
( 47 ) Strategic Evaluation of Distributed Power Generation Technology: A Sustainable Approach
( 48 ) Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach
( 49 ) Study of the Relationship between Economic Growth and Inflation: Application to the Countries of the South Side of the Mediterranean: A Panel Data Approach
( 50 ) Relationships between Financial Development and Economic Growth: A New Approach by Inputs
( 53 ) Confirming the Mediation Effect of A Structural Model By Using Bootstrap Approach: A Case Study of Malaysian 8th Grade Students’ Mathematics Achievement