Pakeeza Khalid
Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad, Pakistan
Corresponding author: pakeezakhalid797@gmail.com
This study analyzes the factors influencing the import of essential oils in Pakistan. It empirically investigates the factors affecting essential oil imports using annual time series data for the years 1965–2021 at the national level. The independent variables considered are population, production, area harvested, total supply, domestic consumption, national income, and official exchange rates, while essential oil imports are the dependent variable. The study employs unit root tests and the ARDL (autoregressive lagged distribution technique) to analyze the data. The results indicate that while the area harvested has a minor influence, total supply and domestic consumption play significant roles in the long term. On the other hand, population, output, and exchange rates are relevant in the short term.