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An aggregate import demand function for India: a cointegration analysis

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  • Dilip Dutta
  • Nasiruddin Ahmed

Abstract

This paper investigates the behaviour of Indian aggregate imports during the period 1971-1995. In the empirical analysis of the aggregate import demand function for India, cointegration and error correction modelling approaches have been used. In the aggregate import demand function for India, import volume is found to be cointegrated with relative import price and real GDP. The econometric estimates of the import-demand function for India suggest that import-demand is largely explained by real GDP, and is generally less sensitive to import price changes. Import liberalization is found to have had little impact on import demand.

Suggested Citation

  • Dilip Dutta & Nasiruddin Ahmed, 2004. "An aggregate import demand function for India: a cointegration analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 11(10), pages 607-613.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:10:p:607-613
    DOI: 10.1080/1350455042000271134
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