Remittances as a determinant of import function (An empirical evidence from Pakistan)

Khan, M. . Inst. of Development Studies; Khattak, N. . Inst. of Development Studies; Bakhtiar, Y. . Inst. of Development Studies; Nawab, B. . Inst. of Development Studies; Rahim, T. . Inst. of Development Studies; Ali, A.

Remittances as a determinant of import function (An empirical evidence from Pakistan)

2007

Khan, M. (NWFP Agricultural Univ., Peshawar (Pakistan). Inst. of Development Studies) | Khattak, N. (NWFP Agricultural Univ., Peshawar (Pakistan). Inst. of Development Studies) | Bakhtiar, Y. (NWFP Agricultural Univ., Peshawar (Pakistan). Inst. of Development Studies) | Nawab, B. (NWFP Agricultural Univ., Peshawar (Pakistan). Inst. of Development Studies) | Rahim, T. (NWFP Agricultural Univ., Peshawar (Pakistan). Inst. of Development Studies) | Ali, A. (Pakistan Academy for Rural Development, Peshawar (Pakistan))

In this paper an attempt has been made to investigate the relationship between remittances and imports. It has been examined that remittances of oversees Pakistanis are usually spent on imports. The estimated import function reveals that remittances play a significant role in the determination of imports in the economy. The results show that marginal propensity of imports and coefficient of remittances is positively related with imports and real exchange is negatively related with imports.

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