Again on trade elasticities: evidence from a selected sample of countries

Francesco Aiello (), Graziella Bonanno and Alessia Via ()

Eurasian Business Review, 2015, vol. 5, issue 2, 259-287

Abstract: This paper focuses on trade elasticities by analysing the case of China, France, Germany, Italy, Japan, UK, and the USA over the period 1990–2012. While the empirical setting mainly refers to panel data techniques for non-stationary data, the VECM model complements the analysis at single-country level. After having shown that long-run relationships are stable to any structural break, it is found that exports and imports are price inelastic for most of the countries in the sample. Furthermore, exports and imports are determined by domestic and foreign income, with asymmetric income elasticities. This helps to explain why global trade imbalances are persistent. Copyright Eurasia Business and Economics Society 2015

Keywords: Trade elasticities; Global trade imbalances; Panel data; C23; F10; F17; F37; P33 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1007/s40821-015-0026-0 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: AGAIN ON TRADE ELASTICITIES. EVIDENCE FROM A SELECTED SAMPLE OF COUNTRIES (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurasi:v:5:y:2015:i:2:p:259-287

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40821

DOI: 10.1007/s40821-015-0026-0

Access Statistics for this article

Eurasian Business Review is currently edited by Marco Vivarelli

More articles in Eurasian Business Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().