Modeling Aggregate Manufactured Exports for Some Asian Newly Industrialized Economies

Vito Muscatelli, Andrew A Stevenson and Catia Montagna

The Review of Economics and Statistics, 1995, vol. 77, issue 1, 147-55

Abstract: A central question in studies of the Asian newly industrialised economies has been whether the extremely rapid export growth of these countries can be viewed as primarily a phenomenon of income-elastic export demand or of fast-expanding export supply in the face of highly price-elastic demand. This paper provides evidence to show that, while high income elasticities of export demand are detected using a conventional simultaneous model, this may conceal the presence of important product differentiation and product innovation effects on export demand. These are then captured using a measure of the total resource base. Copyright 1995 by MIT Press.

Date: 1995
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