Estimating Elasticity Function of Jordanian Aggregate Import Demand

Mohamed Ibrahim Mugableh

Applied Economics and Finance, 2017, vol. 4, issue 2, 33-37

Abstract: This article estimates aggregate import demand function for Jordan using three fully co-integrating regressions over the (1980-2015) period. The bounds testing approach has been employed to test co-integration, while ARDL approach is used to analyze long-run elasticities. The results show a co-integration phenomenon among variables when import volume is dependent variable. In addition, the estimated long-run elasticities of import demand with respect to income and relative prices are 1.16 and -1.03, respectively. The understanding of import demand behavior is crucial for significant import forecasts, international trade planning, and exchange rate policy design.

Keywords: ARDL; co-integration; elasticity; Jordan (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:rfa:aefjnl:v:4:y:2017:i:2:p:33-37

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