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96

Muhammad Zulfiqar and Anwar F. Chishti

We can remove variable TR by putting in its average value, multiplying with the estimated coefficient and adding the resultant figure to

the intercept.

Sd = 11040.9577 + 0.41528Pd + 2.4625FNTWT

(4b)

By the same procedure, we can remove the variable FNTWT and

further condense the domestic supply equation.

Sd = 13485.77 + 0.41528Pd

(4c)

Similarly, the domestic wheat demand (Dd) function can be further

condensed as follows.

Dd = 750.129 - 0.046974Pd + 136.07POP

(5a)

= 16896.20 - 0.046974Pd

(5b)

T h e e s t i m a t e d m o d e l l a c k s a n i m p o r t d e m a n d ( I d ) f u n c t i o n , w h i c h i s c o m p u t e d a s a n i d e n t i t y e q u a t i o n ( d i f f e r e n c e b e t w e e n D d a n d S d ) ; h e n c e :

Id = Dd - Sd

(6a)

= (16896.20 - 0.046974Pd) - (13485.77 + 0.41528Pd)

(6b)

= 3410.43 - 0.462254Pd

(6c)

The estimated wheat import price equation and wheat import supply equation, respectively, represent the effect of the world wheat trade price (Pw) on Pakistan’s wheat import/trade price (Pi) and shows how Pakistan’s wheat import supply (Is) is affected by its various determinants.

Pi = 23.1559 + 0.91124Pw

(7)

Is =-5642.2 + 5.2191P^i - 0.96151Sd,t-1

  • +

    0.68329Dd,t-1

  • +

    0.017019Sw

(8a)

We can merge equation (7) with equation (8a) to create equation (8b).

Is = - 5521.1413 + 4.7556Pw - 0.96151Sd,t-1

  • +

    0.68329Dd,t-1

  • +

    0.017019Sw

(8b)

Replacing the average values of variables Sd,t-1 and Dd,t-1 and adding the intercept, we get a shortened version of the equation:

Is = - 8922.5358 + 4.7556Pw + 0.017019Sw

(8c)

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