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Sensitivities Of Import Demand And Export Supply In An Open Developing Economy: The Evidence From Taiwan, 1961--1994

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Author Info
ERIC C. WANG
Abstract

This study examines the time variations in the elasticities of derived demand for imports and supply of exports regarding Taiwan's aggregate production. It is to identify the long run relationship between production behavior and development process. A translog cost function model is set up to estimate the elasticity series in 1961--94. A regression model incorporating spline time setting with economic variables is built for testing the variations. Empirical results indicate that the elasticity of import demand varies with foreign income and the elasticity of export supply varies with domestic production capacity. Major exogenous events are shown to have significant impacts on production decision. [F14]

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Publisher Info
Article provided by Korean International Economic Association in its journal International Economic Journal.

Volume (Year): 12 (1998)
Issue (Month): 1 (April)
Pages: 121-139
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Handle: RePEc:taf:intecj:v:12:y:1998:i:1:p:121-139

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  1. Wang, Eric C, 1995. "Factor Substitution Approach to Testing the Time Variations in Production: The Case of Taiwan's Manufacturing," Applied Economics, Taylor and Francis Journals, vol. 27(1), pages 107-16, January.
  2. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-76, December. [Downloadable!] (restricted)
  3. Burgess, David F., 1974. "Production theory and the derived demand for imports," Journal of International Economics, Elsevier, vol. 4(2), pages 103-117, May. [Downloadable!] (restricted)
  4. Berndt, Ernst R & Christensen, Laurits R, 1973. "The Internal Structure of Functional Relationships: Separability, Substitution and Aggregation," Review of Economic Studies, Blackwell Publishing, vol. 40(3), pages 403-10, July. [Downloadable!] (restricted)
  5. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February. [Downloadable!] (restricted)
  6. Burgess, David F, 1974. "A Cost Minimization Approach to Import Demand Equations," The Review of Economics and Statistics, MIT Press, vol. 56(2), pages 225-34, May. [Downloadable!] (restricted)
  7. Diewert, W E & Wales, T J, 1992. "Quadratic Spline Models for Producer's Supply and Demand Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 705-22, August. [Downloadable!] (restricted)
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  8. Houthakker, Hendrik S & Magee, Stephen P, 1969. "Income and Price Elasticities in World Trade," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 111-25, May. [Downloadable!] (restricted)
  9. Ulrich R. Kohli, 1978. "A Gross National Product Function and the Derived Demand for Imports and Supply of Exports," Canadian Journal of Economics, Canadian Economics Association, vol. 11(2), pages 167-82, May. [Downloadable!] (restricted)
  10. Kang, Jung M & Kwon, Jene K, 1988. "An Estimation of Import Demand, Export Supply and Technical Change for Korea," Applied Economics, Taylor and Francis Journals, vol. 20(12), pages 1661-74, December.
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