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.

S_{d }= 11040.9577 + 0.41528P_{d }+ 2.4625FNTWT

(4b)

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

further condense the domestic supply equation.

# S_{d }= 13485.77 + 0.41528P_{d }

(4c)

# Similarly, the domestic wheat demand (D_{d}) function can be further

condensed as follows.

# D_{d }= 750.129 - 0.046974P_{d }+ 136.07POP

(5a)

# = 16896.20 - 0.046974P_{d }

(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 :

I_{d }= D_{d }- S_{d }

(6a)

= (16896.20 - 0.046974P_{d}) - (13485.77 + 0.41528P_{d})

(6b)

= 3410.43 - 0.462254P_{d }

(6c)

The estimated wheat import price equation and wheat import supply equation, respectively, represent the effect of the world wheat trade price (P_{w}) on Pakistan’s wheat import/trade price (P_{i}) and shows how Pakistan’s wheat import supply (I_{s}) is affected by its various determinants.

# P_{i }= 23.1559 + 0.91124P_{w }

(7)

I_{s }=-5642.2 + 5.2191P^{^}_{i }- 0.96151S_{d,t-1 }

+

0.68329D

_{d,t-1 }

+

0.017019S

_{w }

(8a)

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

I_{s }= - 5521.1413 + 4.7556P_{w }- 0.96151S_{d,t-1 }

+

0.68329D

_{d,t-1 }

+

0.017019S

_{w }

(8b)

Replacing the average values of variables S_{d,t-1 }and D_{d,t-1 }and adding the intercept, we get a shortened version of the equation:

# I_{s }= - 8922.5358 + 4.7556P_{w }+ 0.017019S_{w }

(8c)