EMPIRICAL ANALYSIS OF AGGREGATE EXPORT DEMAND OF PAKISTAN

Abstract

Current study estimates the aggregate exports demand function for Pakistan for period 1982 to 2015 with reference to major trading partners (USA, UK, Germany, UAE, and Hong Kong) that contribute more than 40% (approx) in Pakistan’s exports by using time series analysis and fully modified least square method (FMLS) for empirical estimation. The result obtained are real foreign income of exporting partner has positive while relative price index and real effective exchange rate have negative significant effect on aggregate export’s demand of Pakistan.