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Functional Form for United States - Mexico Trade Equations

Thomas Fullerton, W. Charles Sawyer and Richard L Sprinkle
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Richard L Sprinkle: University of Texas at El Paso

International Trade from University Library of Munich, Germany

Abstract: Empirical trade equations estimated using aggregate data may impose ill- advised coefficient restrictions. Export demand equations are estimated using quarterly data for bilateral trade flows between the United States and Mexico. The sample period is 1981-1994. Right-hand-side variables include foreign prices, domestic prices, the exchange rate, and income. Estimation results indicate that merchandise exports react heterogeneously to variations in each of the three relative price components.

Keywords: Bilateral Trade Flows; Mexico; Applied Econometrics (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2004-08-10
New Economics Papers: this item is included in nep-ifn
Note: Type of Document - doc; pages: 16
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Related works:
Journal Article: Functional form for United States-México trade equations (1997) Downloads
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