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Are Imports And Exports In The Oic Member Countries Cointegrated? A Reexamination

Author

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  • Tuck Cheong Tang

    (School of Business, Monash University Malaysia.)

Abstract

Applying the recently developed unit root tests with unknown level shift (Lanne, Lutkepohl and Saikkonen, 2002; Saikkonen and Lutkepohl, 2002) and the cointegration test with structural break (Gregory and Hansen, 1996), this study reinvestigates the cointegration relationship between imports and exports for the Organization of the Islamic Conference (OIC) member countries as in Tang and Mohammad (2005). It is found that restrictions are not applicable for testing cointegration between imports and exports for OIC member countries. Interestingly, this study shows cointegration between exports and imports for 9 of the 27 selected OIC member countries (Bangladesh, Cameroon, Chad, Guyana, Indonesia, Mali, Morocco, Niger and Senegal) compared to only 4 countries as demonstrated by Tang and Mohammad (2005). Consequently, relevant policy implications are also discussed in this study.

Suggested Citation

  • Tuck Cheong Tang, 2006. "Are Imports And Exports In The Oic Member Countries Cointegrated? A Reexamination," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 14(1), pages 49-79, December.
    • Handle: RePEc:ije:journl:v:14:y:2006:i:1:p:49-79
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    References listed on IDEAS

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    Cited by:

    1. KONYA, Laszlo & SINGH, Jai Pal, 2008. "Are Indian Exports And Imports Cointegrated?," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(2), pages 177-186.
    2. Khyati Kathuria & Nand Kumar, 2022. "Are exports and imports of India’s trading partners cointegrated? Evidence from Fourier bootstrap ARDL procedure," Empirical Economics, Springer, vol. 62(3), pages 1177-1191, March.
    3. Augustine C. Arize & Mohsen Bahmani-Oskooee, 2018. "Do Imports and Exports Adjust Nonlinearly? Evidence from 100 Countries," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 18(1), pages 1-30.
    4. Genci Gjanci & Ardian Cerava, 2014. "An empirical analysis of the trade balance in postcommunist Albania," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 7(1), pages 33-42, June.
    5. Zeshan Arshad & Saba Mukhtar & Amina Bibi & Azeema Zia, 2015. "Imports and Exports of Pakistan Time Series (1970-2013)," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(10), pages 473-478, October.
    6. Ali Farhan Chaudhry & Abdul Rauf Butt & Muhammad Irfan Chani, 2017. "Long-Run Relationship between Exports and Imports of Pakistan," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(8), pages 204-211, August.
    7. de-Graft Acquah, Henry & De-Graft Acquah, Joyce, 2015. "An Application of the Error Correction Model in Analyzing the Long Run Equilibrium between Ghana’s Exports and Imports," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 9(3), pages 1-6, December.
    8. Jamal HUSEIN, 2014. "Are Exports and Imports Cointegrated? Evidence from Nine MENA Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 123-132.
    9. Haque, M.I., 2015. "Are exports and imports of Saudi Arabia cointegrated? An empirical study," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(1), pages 111-124.
    10. Soo Khoon Goh & Tuck Cheong Tang & Chung Yan Sam, 2020. "Are Major US Trading Partners’ Exports and Imports Cointegrated? Evidence from Bootstrap ARDL," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(1), pages 7-27, February.
    11. Tahir Mukhtar & Aliya H. Khan, 2016. "The Current Account Deficit Sustainability: An Empirical Investigation for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 397-419.

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    More about this item

    Keywords

    Cointegration; Structural break; Organization of the Islamic Conference (OIC);
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F35 - International Economics - - International Finance - - - Foreign Aid

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