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

By Claudio Montenegro, Abdelhak S Senhadji

October 1, 1998

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Claudio Montenegro, and Abdelhak S Senhadji. Time Series Analysis of Export Demand Equations: A Cross-Country Analysis, (USA: International Monetary Fund, 1998) accessed December 26, 2024

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.

Subject: Export prices, Exports, Foreign exchange, International trade, National accounts, Personal income, Price elasticity, Prices, Real exchange rates

Keywords: Africa, Asia and Pacific, Cointegration, Elasticity estimate, Exchange rate, Export demand, Export demand equation, Export demand function, Export demand model, Export prices, Exports, Import demand elasticity, Income and Price Elasticities, Income elasticity, Personal income, Price elasticity, Real exchange rates, World export unit value, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1998/149
Stock No:

WPIEA1491998
ISBN:

9781451923582
ISSN:

1018-5941

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