U.S. Import Supply Behavior: Evidence from the 1980s

Catherine Carey
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Catherine Carey: Western Kentucky University

Eastern Economic Journal, 1997, vol. 23, issue 2, 139-149

Abstract: Import supply has received insufficient attention in previous empirical studies of trade behavior. This study proposes an alternative way of estimating import supply and demand functions. Using 2SLS and disaggregated panel data more information from the supply side of international trade is incorporated into the model. The results raise questions about the relevance of the assumption of infinite import supply elasticities. While rising relative (foreign to U.S.) wages dampen import growth, increasing foreign investment by U.S. competitors increases U.S. imports.

Keywords: Import; International Trade; Trade (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:23:y:1997:i:2:p:139-149

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