Time Series Analysis of Export Demand Equations : A Cross-Country Analysis

Author/Editor:

Claudio Montenegro ; Abdelhak S Senhadji

Publication Date:

October 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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. 98/149

Subject:

English

Publication Date:

October 1, 1998

ISBN/ISSN:

9781451923582/1018-5941

Stock No:

WPIEA1491998

Format:

Paper

Pages:

29

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