Price Elasticities Of Import Demand Research Articles

Dynamic analysis of Caribbean food import demand

Short- and long-run price and income elasticities are generally unavailable at the regional level for major imported food groups for the Caribbean. These elasticity measures are needed to enhance policymaking. This paper therefore seeks to determine the income, own-price and cross-price elasticities of eight major imported food groups. This will show the relationships between income and price changes on the import quantities for the major food groups. This was done using an error-corrected linear approximate almost ideal demand system (EC-LA-AIDS) for the period 1961–2021, using annual data. The study found that the theoretical restrictions of homogeneity and symmetry did not hold in the static LA-AIDS model but did in the EC-LA-AIDS model. The speed of adjustment parameter in the EC-LA-AIDS model revealed that imported beverages had the slowest adjustment to long-run equilibrium while all other imported food categories had a moderate adjustment speed. The study also derived short- and long-run income and price elasticities of import demand for the eight imported food categories. In both time horizons, income elasticities revealed that all imported food categories were normal goods. In both time horizons, imported meat and seafood, and sugar and honey were the most responsive to changes in income, while spices and tea was the least responsive. Own-price elasticities revealed that all imported food categories were import price inelastic except for meat and seafood which was found to be import price elastic in both time horizons. Additionally, cross-price elasticities unveiled various substitution and complementary relationships between pairs of imported foods. The study not only contributed empirical insights into the import demand dynamics of the Caribbean, but also emphasized significant policy implications arising from the research findings.

A method for calculating export supply and import demand elasticities

Frequently in applied work, researchers need to utilize values for price elasticities of import demand and export supply. Unfortunately, econometric estimates of these elasticities are limited, perhaps due to the difficulties inherent in estimating them. This paper uses a methodology for estimating price elasticities of import demand and export supply for 87 countries without using econometrics directly.

An Empirical Analysis of the Demand for Imports in three CARICOM Member Countries: An Application of the Bounds Test for Cointegration

This paper provides fresh estimates of income and price elasticities of import demand in Guyana, Jamaica, and Trinidad and Tobago using a bounds test for cointegration. In addition, the paper also provides estimates of the consumption, investment, and exports elasticities of import demand. These latter elasticities were all found to be positive and statistically significant with values ranging from 0.16 to 0.55 in the long-run.

Short-run and long-run elasticities of import demand for crude oil in Turkey

The aim of this study is to attempt to estimate the short-run and the long-run elasticities of demand for crude oil in Turkey by the recent autoregressive distributed lag (ARDL) bounds testing approach to cointegration. As a developing country, Turkey meets its growing demand for oil principally by foreign suppliers. Thus, the study focuses on modelling the demand for imported crude oil using annual data covering the period 1980–2005. The bounds test results reveal that a long-run cointegration relationship exists between the crude oil import and the explanatory variables: nominal price and income, but not in the model that includes real price in domestic currency. The long-run parameters are estimated through a long-run static solution of the estimated ARDL model, and then the short-run dynamics are estimated by the error correction model. The estimated models pass the diagnostic tests successfully. The findings reveal that the income and price elasticities of import demand for crude oil are inelastic both in the short run and in the long run.

A NOTE ON TRADE ELASTICITIES IN ASIAN COUNTRIES

This article estimates the price and income elasticities of import and export demands for India, Japan, the Philippines, Sri Lanka, and Thailand using annual time series data. Both price and income elasticities of import demand are found to be in the inelastic range for all five countries. Export demand is found to be price elastic for Japan, the Philippines, and Thailand and price inelastic for India and Sri Lanka. Export demand is found to be income elastic for Japan but not for the other four countries. The Marshall-Lerner-Robinson condition states that a devaluation improves the balance of trade position only if the sum of the absolute values of price elasticity of import demand and the price elasticity of export demand is greater than one. This condition is met for India, Japan, the Philippines, and Thailand but not for Sri Lanka.

Trade liberalization effects on commodity imports in Cameroon

The hypotheses that an increase in relative price elasticities is not associated with increased import substitution and that an increase in income and foreign exchange elasticities is not associated with a greater degree of “openness” of the Cameroon economy are investigated using cointegration and error‐correction modelling. Disaggregation of total imports into raw materials, consumer, intermediate and capital goods shows that long‐run relative price elasticities of import demand are greater than short‐run values, being above unity for raw materials and consumer goods; thus leading to rejection of the first hypothesis for these categories of imports. Imports are income‐elastic for capital and intermediate goods and foreign exchange inelastic for all categories of import, implying that the Cameroon economy has been less open to trade in general. Some policy implications of the results are provided.

An Estimation of Price Elasticities of Import Demand and Export Supply Functions Derived from an Integrated Production Model (Written in Korean)

An Estimation of Price Elasticities of Import Demand and Export Supply Functions Derived from an Integrated Production Model (Written in Korean)

Variable Elasticities and Non-Price Rationing in the Import Demand Function of Canada, 1956:1-1973:4

The empirical results presented in this paper were obtained from estimating import demand functions for Canada at a relatively disaggregated level using quarterly data for the period 1956-73 with the following two objectives: first, to assess the importance of non-price rationing, represented by the aggregate capacity utilization rate, for import demand in Canada; and secondly, to test the common assumption that income and price elasticities of import demand are invariant with respect to the size of change in income and price. The specification of the estimated model is detailed in the following section, and the third section contains a summary of the empirical results. The main conclusions of this paper are summarized in the fourth section, while the sources of data are presented in the last section.

Measurement of Tariff Elasticities

The recent Kennedy Round has focused renewed attention on the effects of tariff reductions on the quantity demanded of a country's imports. This study is primarily devoted to the comparative statics effects of such tariff reductions on the quantity demanded of electrical appliances imported from the United States to Canada. An empirical approach is used with emphasis given to the following five representative commodities: electrical refrigerators, automatic washing machines, electric ranges, television sets, and automobile storage batteries. Under the Kennedy Round, Canada agreed to lower tariffs on the foregoing commodities by a substantial amount 1 . Since there had been very few changes in the tariff on these commodities prior to 1967, no attempt is made to measure tariff elasticities directly. An indirect approach is taken instead. The tariff elasticities of import price, import demand and import expenditures are derived from the price elasticities of import demand and supply. Thus, the first problem ...

Some Evidence on the International Price Mechanism

Previous articleNext article No AccessSome Evidence on the International Price MechanismArnold C. HarbergerArnold C. Harberger Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Journal of Political Economy Volume 65, Number 6Dec., 1957 Article DOIhttps://doi.org/10.1086/257985 Views: 10Total views on this site Citations: 31Citations are reported from Crossref Copyright 1957 The University of ChicagoPDF download Crossref reports the following articles citing this article:Long Hai Vo, Thai‐Ha Le COVID‐19 test‐kit trade and trade policy: Implications for developing countries, The World Economy 65 (May 2022).https://doi.org/10.1111/twec.13276Ari Van Assche, Byron Gangnes Production Switching and Vulnerability to Protectionism, (Oct 2019): 69–87.https://doi.org/10.1108/S1745-886220190000014006Robert C. 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