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Determinants of Sectoral Import in Manufacturing Industry: A Panel Data Analysis

Author

Listed:
  • Caner COLAK

    (Assistant Foreign Trade Expert, Ministry of Economy)

  • Selman TOKPUNAR

    (Foreign Trade Expert, Ministry of Economy)

  • Yasin UZUN

    (Foreign Trade Expert, Ministry of Economy)

Abstract

This paper investigates determinants of sectoral import in Turkey’s manufacturing industry over a sample from 1998Q1 to 2012Q2 by using Augmented Mean Group analysis which is introduced by Eberhardt and Teal (2008) and developed by Eberhardt and Bond (2009). The model takes into account parameter heterogeneity and cross-sectional dependence. Cross-sectional dependence is tested by CD-Bias test of Pesaran (2008), while Cross-Sectionally Augmented Dickey-Fuller (CADF) test proposed by Pesaran (2007) is employed for testing for the presence of a unit root and cointegration among the variables is tested by using the methodology of Westerlund (2008). The regression results indicate that elasticities of import demand with respect to industrial production are different at sectoral level and coefficients of real exchange rate are significant and positive for almost all of the sectors. It is seen that the sectors with highest elasticities of import demand with respect to industrial production are basic metals, motor vehicles, eletrical machinery and textiles. Also, working day variable and crisis dummy are used to explore the impact of calendar day effect and global crisis.

Suggested Citation

  • Caner COLAK & Selman TOKPUNAR & Yasin UZUN, 2014. "Determinants of Sectoral Import in Manufacturing Industry: A Panel Data Analysis," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 14(2), pages 271-281.
    • Handle: RePEc:ege:journl:v:14:y:2014:i:2:p:271-281
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Turkey; import; sectoral panel analysis;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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