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Time Series Analysis of Export Demand Equations: A Cross-Country Analysis

Author

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  • Abdelhak S. Senhadji

    (International Monetary Fund)

  • Claudio E. Montenegro

    (International Monetary Fund)

Abstract

The paper estimates export demand elasticities for a large number of developing and industrial countries, using time-series techniques that account for the nonstationarity in the data. The average long-run price and income elasticities are found to be approximately -1 and 1.5, respectively. Thus, exports do react to both the trade partners' income and to relative prices. Africa faces the lowest income elasticities for its exports, while Asia has both the highest income and price elasticities. The price and income elasticity estimates have good statistical properties. Copyright 1999, International Monetary Fund

Suggested Citation

  • Abdelhak S. Senhadji & Claudio E. Montenegro, 1999. "Time Series Analysis of Export Demand Equations: A Cross-Country Analysis," IMF Staff Papers, Palgrave Macmillan, vol. 46(3), pages 1-2.
    • Handle: RePEc:pal:imfstp:v:46:y:1999:i:3:p:2
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    References listed on IDEAS

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