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Import elasticity of tea: a case of Pakistan

Author

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  • Khan, Rana Ejaz Ali
  • Hussain, Tanveer

Abstract

Pakistan is second largest importer of tea. It is based on the fact that negligible part of the consumption of tea is produced domestically. The import analysis of tea is significant to check the import bill. The paper empirically investigated the determinants of import of tea using annual time series data for the years 1977-2009 at the national level. We find that import of tea is positively influenced by GDP, domestic tea consumption and human population. While the domestic price of the tea and import duty on tea negatively impacts the import of tea. The findings indicate that import of tea cannot be significantly controlled by adjusting the variables of domestic price and import duty on tea. The point to the need for the policy makers is to decrease the import bill by changing the consumption behavior of the people and introducing the substitutes of tea which are domestically available.

Suggested Citation

  • Khan, Rana Ejaz Ali & Hussain, Tanveer, 2011. "Import elasticity of tea: a case of Pakistan," MPRA Paper 34793, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34793
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    References listed on IDEAS

    as
    1. Fabiosa, Jacinto F. & Ukhova, Yekaterina S., 2000. "New Aggregate And Source Specific Pork Import Demand Elasticity For Japan: Implications To U.S. Exports," 2000 Annual meeting, July 30-August 2, Tampa, FL 21743, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Julie A. Nelson, 1991. "Quality Variation and Quantity Aggregation in Consumer Demand for Food," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1204-1212.
    3. Dipendra Sinha, 1997. "An aggregate import demand function for Pakistan," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 25(1), pages 114-114, March.
    4. Jacinto F. Fabiosa & Yekaterina S. Ukhova, 2000. "New Aggregate and Source-Specific Pork Import Demand Elasticity for Japan: Implications to U.S. Exports," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 00-wp253, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Bergtold, Jason S. & Akobundu, Eberechukwu & Peterson, Everett B., 2004. "The FAST Method: Estimating Unconditional Demand Elasticities for Processed Foods in the Presence of Fixed Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-20, August.
    6. Fabiosa, Jacinto F. & Ukhova, Y., 2000. "New Aggregate and Source Specific Pork Import Elasticity for Japan," Staff General Research Papers Archive 1883, Iowa State University, Department of Economics.
    7. Sarmad, Khwaja, 1989. "The determinants of import demand in Pakistan," World Development, Elsevier, vol. 17(10), pages 1619-1625, October.
    8. Schmitz, Troy G. & Seale, James L., Jr., 2002. "Import Demand For Disaggregated Fresh Fruits In Japan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(3), pages 1-18, December.
    9. Jacinto F. Fabiosa & Yekaterina S. Ukhova, 2000. "New Aggregate and Source-Specific Pork Import Demand Elasticity for Japan: Implications to U.S. Exports," Center for Agricultural and Rural Development (CARD) Publications 00-wp253, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Imports; Pakistan; Tea; International Trade;
    All these keywords.

    JEL classification:

    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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