Price and income elasticities of crude oil import demand in South Africa: A cointegration analysis

Emmanuel Ziramba

Energy Policy, 2010, vol. 38, issue 12, 7844-7849

Abstract: This paper examines the demand for imported crude oil in South Africa as a function of real income and the price of crude oil over the period 1980-2006. We carried out the Johansen co integration multivariate analysis to determine the long-run income and price elasticities. A unique long-run cointegration relationship exists between crude oil imports and the explanatory variables. The short-run dynamics are estimated by specifying a general error correction model. The estimated long-run price and income elasticities of -0.147 and 0.429 suggest that import demand for crude oil is price and income inelastic. There is also evidence of unidirectional long-run causality running from real GDP to crude oil imports.

Keywords: Crude; oil; import; South; Africa; Cointegration (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (49)

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