Time Series Analysis of Export Demand Equations: A Cross-Country Analysis

Claudio Montenegro and Abdelhak Senhadji

No 1998/149, IMF Working Papers from International Monetary Fund

Abstract: The paper estimates export demand elasticities for a large number of developing and developed countries, using time-series techniques that account for the nonstationarity in the data. The average long-run price and income elasticities are found to be approximately -1 and 1.5, respectively. Thus, exports do react to both the trade partners’ income and to relative prices. Africa faces the lowest income elasticities for its exports, while Asia has both the highest income and price elasticities. The price and income elasticity estimates have good statistical properties.

Keywords: WP; exchange rate; Export demand; Income and Price Elasticities; Cointegration; income elasticity; export demand equation; export demand model; import demand elasticity; world export unit value; export demand function; elasticity estimate; Exports; Price elasticity; Real exchange rates; Personal income; Export prices; Africa; Asia and Pacific (search for similar items in EconPapers)
Pages: 29
Date: 1998-10-01
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Citations: View citations in EconPapers (43)

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Journal Article: Time Series Analysis of Export Demand Equations: A Cross-Country Analysis (1999)
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