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Workers' remittances and import demand in Pakistan

Author

Listed:
  • Khair-uz Zaman

    (Department Economics, Gomal University, Dera Ismail Khan, Pakistan)

  • Nazakat Ali Imrani

    (Department of Commerce and Business Administration, Gomal University, Dera Ismail Khan, Pakistan)

Abstract

Using quarterly data for the period 1975-2004, this paper estimates import functions for Pakistan both at the aggregate and disaggregated levels. Findings show that remittances do have a significant impact on the demand for imports in the aggregate equation, with the elasticity for remittances being 0.15, and 0.70 for domestically generated income, in the long run (natural logarithm). Remittances, however, have no impact on the demand for imported consumer goods; their impact on the import of raw materials and capital goods are greater than that of domestically generated income.

Suggested Citation

  • Khair-uz Zaman & Nazakat Ali Imrani, 2005. "Workers' remittances and import demand in Pakistan," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 42(2), pages 127-137, December.
    • Handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:127-137
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/207/593
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    Citations

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    Cited by:

    1. Muhammad Ahad & Talat Afza & Muhammad Shahbaz, 2017. "Financial Development and Estimation of Import Demand Function in Pakistan: Evidence from Combined Cointegration and Causality Tests," Global Business Review, International Management Institute, vol. 18(1), pages 118-131, February.

    More about this item

    Keywords

    overseas workers; remittances; import function; Pakistan;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business

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