U.S. Import Supply Behavior: Evidence from the 1980s
AbstractImport supply has received insufficient attention in previous empirical studies of trade behavior. This study proposes an alternative way of estimating import supply and demand functions. Using 2SLS and disaggregated panel data more information from the supply side of international trade is incorporated into the model. The results raise questions about the relevance of the assumption of infinite import supply elasticities. While rising relative (foreign to U.S.) wages dampen import growth, increasing foreign investment by U.S. competitors increases U.S. imports.
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Bibliographic InfoArticle provided by Eastern Economic Association in its journal Eastern Economic Journal.
Volume (Year): 23 (1997)
Issue (Month): 2 (Spring)
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Import; International Trade; Trade;
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- F14 - International Economics - - Trade - - - Empirical Studies of Trade
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- Zimmerman, Paul R. & Carlson, Julie A., 2012. "Critical import supply elasticities and the ‘imports-as-market-discipline’ hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 345-354.
- Hasnat, Baban, 2002. "The impact of core labour standards on exports," International Business Review, Elsevier, vol. 11(5), pages 563-575, October.
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