Japanese import price elasticities by region of origin: 1968–1988

Abstract

Listen

Translate article

This note provides estimates of aggregate Japanese import demand functions for five regions of origin, using a system-wide model that avoids many of the drawbacks of most previous import demand analyses. The results suggest that: (i) changes in the relative export prices of supplying regions are an important determinant of the geographical composition of Japanese imports, (ii) a number of countries with price sensitive exports can benefit from recent Japanese import promotion programs, and (iii) competition among imports from the supplying regions exists but at a somewhat limited level.