Empirical Analysis of Import Demand Behavior of Least Developed Countries

Yoichi Matsubayashi () and Shigeyuki Hamori

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the long-run stability of import demand function in least developed countries (LDCs) using recently developed panel cointegration techniques. We test for cointegration using two data sets: a) annual data for 15 countries from 1965 to 2004; and b) annual data for 22 countries from 1984 to 2004. We find that cointegration is present and that, indeed, there is a stable import demand function in these economies. The income elasticity ranges from 1.26 to 1.69 and price elasticity ranges from -0.72 to -0.75.

Keywords: import demand; panel unit root; panel cointegration; LDCs (search for similar items in EconPapers)
JEL-codes: F41 O11 (search for similar items in EconPapers)
Date: 2009-09
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Citations: View citations in EconPapers (5)

Published in Economics Bulletin 2.29(2009): pp. 1460-1475

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Related works:
Journal Article: Empirical analysis of import demand behavior of least developed countries (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:17266

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