Determinants of Import Demand for Crude Oil in Pakistan

Authors

  • Muhammad Farhan Asif
  • Shafaqat Ali
  • Hina Safdar

Keywords:

Import demand, Crude oil, Pakistan

Abstract

This study analyzes determinants of import demand for crude oil in Pakistan. For this purpose, Co- integration technique has been used to estimates long run relationship between crude oil import demand and its determinants; GDP per capita, price of crude oil, real effective exchange rate, and electricity production from oil sources. This import demand of crude oil function empirically tested for Pakistan. Results show that import demand elasticity of crude oil with respect to its different determinants is different. The import demand of crude oil is affected positively and significantly by GDP per capita and electricity production from oil sources. Price and real effective exchange rate have negative and significant impact on crude oil import demand in Pakistan. This study provides guidelines for macroeconomic policymakers in order to formulate comprehensive and appropriate import policy for crude oil.

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Published

2020-08-30

How to Cite

Asif, M. F. ., Ali, S. ., & Safdar, H. . (2020). Determinants of Import Demand for Crude Oil in Pakistan. The Journal of Contemporary Issues in Business and Government, 26(2), 2145–2153. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/484

Issue

Vol. 26 No. 2 (2020): The journal of contemporary issues in business and government

Section

Articles

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