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Empirical analysis of import demand behavior of least developed countries

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  • Yoichi Matsubayashi

    ()
    (Kobe University)

  • Shigeyuki Hamori

    ()
    (Kobe University)

Abstract

This paper examines the long-run stability of import demand function in Least Developed Countries (LDC) using recently developed panel cointegration techniques. We test for cointegration using two data sets: a) annual data for 15 countries between 1965 and 2004 and b) annual data for 22 countries between 1984 and 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.

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File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P87.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 2 ()
Pages: 1443-1458

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Handle: RePEc:ebl:ecbull:eb-09-00049

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Keywords: import demand; panel unit root; panel cointegration; LDC;

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Cited by:
  1. Shigeyuki Hamori & Yoichi Matsubayashi, 2009. "Empirical analysis of export demand behavior of LDCs: Panel cointegration approach," Economics Bulletin, AccessEcon, vol. 29(3), pages 1990-1999.

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