Revisiting South Korea's Import Demand Behavior: A Cointegration Analysis *

Tuck Cheong Tang

Asian Economic Journal, 2005, vol. 19, issue 1, pages 29-50

Abstract: Using cointegration techniques, the present study re-examines the long-run relationships of South Korea's aggregate import demand behavior. The present study considers four domestic activity variables; namely, gross domestic product, gross domestic product minus exports, national cash flow and final expenditure components for aggregate import demand in South Korea. The sample period covers quarterly data from 1970 to 2002. The present study provides empirical evidence of a cointegrating relation in the South Korea's import demand in which it is significant to South Korea's trade policy implication, particularly to improve external balances. Copyright 2005 East Asian Economic Association..

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