Manufactures Import Demand: Structural Differences in the European Union

Ray Barrell

No 146, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: Modern trade theory suggests that trade patterns depend upon the variery and quality of goods a country produces a well as on comparative advantage. Variety and quality can be represented by technology and by the presence of foreign firms. Structural differences in import demand amongst European countries are tested for and manufactures import demand is studied across nine European countries, pooling over the period 1970‐1995, starting with a set of adequate import demand equations. If the same technology is allowed for but with different FDI effects across countries, it is possible to impose common long‐run income and price effects on manufactures imports.

Date: 1999-04
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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:146

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