Price and Income Elasticities of Consumer Goods Imports of Pakistan

Estimation of disaggregated import elasticities for developing countries presents a formidable data-handling problem. The available studies on the subject are concerned mostly with the estimation of income and price elasticities of imports at a disaggregated level corresponding to the one-digit level of the Standard International Trade Classification (SITC), see, e.g., Khan [I], Melo and Vogt [4], Nguyen and Bhuyan [5). Consequently, they apply a common elasticity estimate to all commodity sub-groups..