Aggregate Import demand and Expenditure Components in Ghana:An Econometric Analysis

Joseph Frimpong () and Eric Oteng-Abayie

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, the behaviour of Ghana’s imports during the period 1970-2002 is studied using disaggregated expenditure components of total national income. We use the newly developed bounds testing approach to cointegration and estimated an error correction model to separate the short- and long-run elements of the import demand relationship. The study shows inelastic import demand for all the expenditure components and relative price. In the long-run, investment and exports are the major determinant of movements in imports in Ghana. In the short run household and government consumption expenditures is the major determinant of import demand. Import demand is not very sensitive to price changes.

Keywords: import demand; imperfect substitution; ARDL cointegration; bounds test approach (search for similar items in EconPapers)
JEL-codes: C22 F10 F41 (search for similar items in EconPapers)
Date: 2006-08-15, Revised 0002-08-15
New Economics Papers: this item is included in nep-afr
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:599

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