Estimating export equations

B. Bhaskara Rao () and Rup Singh

Applied Economics Letters, 2007, vol. 14, issue 11, pages 799-802

Abstract: Accurate estimates of the price and income elasticities of exports are valuable for growth policies based on trade promotion. However, not sufficient attention seems to have been paid to the specification of the relative price variable in some influential empirical works. This article estimates the export equation for Fiji, to show that inappropriate specification of the relative price variable may give underestimates of the price elasticity and overestimates of the income elasticity.

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Related works:
Working Paper: ESTIMATING EXPORT EQUATIONS (2005)
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