Relative Responsiveness of Trade Flows to a Change in Prices and Exchange Rate
Mohsen Bahmani-Oskooee () and
International Review of Applied Economics, 2003, vol. 17, issue 3, 293-308
A country can restrict her imports by imposing tariffs and stimulating her exports by providing subsidies. The same goal could be achieved through devaluation. One policy question that we face is the time it takes for either policy to affect the trade flows. We investigate here the relative responsiveness of the trade flows to a change in relative prices versus to a change in exchange rate. After estimating an error-correction version of import and export demand functions for nine industrial countries, unlike earlier studies that employed non-stationary data, our findings indicate that there is no specific answer and trade flows of different countries react differently.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:irapec:v:17:y:2003:i:3:p:293-308
Ordering information: This journal article can be ordered from
Access Statistics for this article
International Review of Applied Economics is currently edited by Professor Malcolm Sawyer
More articles in International Review of Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().