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Modelling import demand behaviour in Ghana: a re-examination

Author

Listed:
  • George Marbuah

    (Swedish University of Agricultural Sciences)

Abstract

This paper empirically models Ghana's real import demand with respect to disaggregated expenditure components of final demand, relative price and international reserves. Using cointegration and error-correction models, the study finds significant differences between long-run and short-run import demand elasticities. Private consumption expenditure has the biggest impact on the demand for imports. Macroeconomic policies designed to influence imports should consider the relative impact and behaviour of each disaggregated import demand determinant.

Suggested Citation

  • George Marbuah, 2013. "Modelling import demand behaviour in Ghana: a re-examination," Economics Bulletin, AccessEcon, vol. 33(1), pages 482-493.
    • Handle: RePEc:ebl:ecbull:eb-12-00185
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I1-P46.pdf
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    References listed on IDEAS

    as
    1. Morris Goldstein & Mohsin S. Khan, 2017. "Income and Price Effects in Foreign Trade," World Scientific Book Chapters, in: TRADE CURRENCIES AND FINANCE, chapter 1, pages 3-81, World Scientific Publishing Co. Pte. Ltd..
    2. Guncavdi, Oner & Ulengin, Burc, 2008. "Aggregate Imports and Expenditure Components in Turkey: Theoretical and Empirical Assessment," MPRA Paper 9622, University Library of Munich, Germany.
    3. Tang, Tuck Cheong, 2003. "An empirical analysis of China's aggregate import demand function," China Economic Review, Elsevier, vol. 14(2), pages 142-163.
    4. Frimpong, Joseph Magnus & Oteng-Abayie, Eric Fosu, 2006. "Aggregate Import demand and Expenditure Components in Ghana:An Econometric Analysis," MPRA Paper 599, University Library of Munich, Germany, revised 15 Aug 0002.
    5. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    6. Abdelhak Senhadji, 1998. "Time-Series Estimation of Structural Import Demand Equations: A Cross-Country Analysis," IMF Staff Papers, Palgrave Macmillan, vol. 45(2), pages 236-268, June.
    7. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, vol. 64(4), pages 813-836, July.
    8. Seema Narayan & Paresh Kumar Narayan, 2005. "An empirical analysis of Fiji's import demand function," Journal of Economic Studies, Emerald Group Publishing, vol. 32(2), pages 158-168, May.
    9. Xu, Xinpeng, 2002. "The dynamic-optimizing approach to import demand: a structural model," Economics Letters, Elsevier, vol. 74(2), pages 265-270, January.
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    Cited by:

    1. Birendra Bahadur Budha, 2014. "The Role of Expenditure Components in Nepal’s Import from India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(1), pages 37-54, March.

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    More about this item

    Keywords

    Import demand; Consumption expenditure; Current account; Trade deficit; Ghana;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F0 - International Economics - - General

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