UK Exports of Manufactures: The Role of Supply Side Factors

Sean Holly and Keith Wade

Scottish Journal of Political Economy, 1991, vol. 38, issue 1, 1-18

Abstract: The authors estimate a model of U.K. exports of manufactures, separating supply and demand effects, in order to test whether the supply side reforms of the 1980s have improved export performance. M. Landesmann and A. Snell (1989) have argued recently that the income elasticity of the demand for U.K. exports has increased over the 1980s. The authors find the income elasticity has fallen. They can explain Landesmann and Snell's results if their model can be interpreted as an unrestricted reduced form. Then it is the rise in the supply price elasticity that explains the rise in the reduced-form effects of world trade on exports. Copyright 1991 by Scottish Economic Society.

Date: 1991
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