Time Series Analysis of Export Demand Equations: A Cross-Country Analysis
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Summary:
The paper estimates export demand elasticities for a large number of developing and developed countries, using time-series techniques that account for the nonstationarity in the data. The average long-run price and income elasticities are found to be approximately -1 and 1.5, respectively. Thus, exports do react to both the trade partners’ income and to relative prices. Africa faces the lowest income elasticities for its exports, while Asia has both the highest income and price elasticities. The price and income elasticity estimates have good statistical properties.
Series:
Working Paper No. 1998/149
Subject:
Export prices Exports Foreign exchange International trade National accounts Personal income Price elasticity Prices Real exchange rates
English
Publication Date:
October 1, 1998
ISBN/ISSN:
9781451923582/1018-5941
Stock No:
WPIEA1491998
Pages:
29
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