La demanda por importaciones y exportaciones: evidencia de cointegración para México, 1991-2005

Rodolfo Cermeño and Huver Rivera

No DTE 449, Working Papers from CIDE, División de Economía

Abstract: This paper uses a cointegration approach to estimate the demand functions for imports and exports in Mexico. The especification of each function is derived from the model of imperfect substitute goods and are estimated using monthly data over the period 1991-2005. It is found that all variables can be characterized as processes integrated of order one and that there exists significant cointegration relationships for the demand functions of exports and imports. In both cases, the long run income and price elasticities are significant and consistent with the theoretical model. Quantitatively, although the nominal exchange rate plays an important role in the determination of trade flows, the income effect becomes their main determinant.

Keywords: demand functions; imports; exports; Mexico (search for similar items in EconPapers)
JEL-codes: C13 F10 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2008-09
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