Public Policy Determinants of Import substitution Industrialization, A Case Study of Pakistan: Analyzing the Impact of GDP, Total Reserves, Industry and Exchange rates

Abstract

This study explores the determinants of import substitution industrialization of Pakistan. We use dependent variable is Import substitution and Independent variable are GDP, Total Reserve, Industry, Exchange rate. We use Time series Data from (1982- 2021). To get the empirical results we use the ADF and ARDL approach.  We get all the dependent and independent variable from the website of world development indicator (WDI). The result reveal that the import substitution has a positive effect on imports, GDP, Total reserve, exchange rate and industry. On the basis of our findings, we suggest the policy for the determinants of import substitution industrialization are Dependency Theory and Infant Industry argument.