IMPORT INTENSITY AND EXPORT PERFORMANCE: A COMPARATIVE ANALYSIS FOR INDIA, PAKISTAN AND CHINA

Abstract

This study empirically analyses the impact of import intensity on export performance. A cross country annual data of Pakistan, China and India is taken from 1988 to 2016. All variables in the analysis found to be stationary at first difference. Ordinary Least Square Method is applied to check time series impact between both variables. For comparison of parameters of Import intensity, panel regression is regressed using interactive dummy. Import intensity is divided into two parts as aggregated imports and disaggregated imports. Results indicate that import intensity has positive and significant impact on exports performance in all the three countries but in case of Pakistan responsiveness is relatively higher than the other countries irrespective of aggregated level or disaggregated level. The performance of exports in Pakistan highly depends on the imported inputs. Trade restrictions have not statistically significant impact on exports’ performance in observed data