A Method for Calculating Export Supply and Import Demand Elasticities
IMF Working Papers, July 1, 2010
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- A Method for Calculating Export Supply and Import Demand Elasticities
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Bibliographic details
- Authors: Stephen Tokarick
- Published: July 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455202140.001
Summary
- Trade elasticities are often needed in applied country work for various purposes.
- The paper describes a method for estimating import demand and export supply elasticities without using econometrics.
- The paper reports empirical estimates of these elasticities for a large number of low, middle, and upper income countries.
- The paper shows how the estimated elasticities can be used in developing exchange rate assessments.
Methodological approach
- Presents a non-econometric method to estimate:
- import demand elasticities, and
- export supply elasticities.
- Emphasizes applicability to country work where trade elasticities are required.
Empirical coverage and findings
- Provides empirical estimates for a large number of low, middle, and upper income countries.
- Intended outputs include elasticities that can be used in applied policy analysis and assessments.
Application: exchange rate assessments
- Demonstrates how the estimated import demand and export supply elasticities can be used to inform exchange rate assessments.