Aggregate Import demand and Expenditure Components in Ghana:An Econometric Analysis
AbstractIn this paper, the behaviour of Ghana’s imports during the period 1970-2002 is studied using disaggregated expenditure components of total national income. We use the newly developed bounds testing approach to cointegration and estimated an error correction model to separate the short- and long-run elements of the import demand relationship. The study shows inelastic import demand for all the expenditure components and relative price. In the long-run, investment and exports are the major determinant of movements in imports in Ghana. In the short run household and government consumption expenditures is the major determinant of import demand. Import demand is not very sensitive to price changes.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 599.
Date of creation: 15 Aug 2006
Date of revision: 15 Aug 0002
import demand; imperfect substitution; ARDL cointegration; bounds test approach;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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- George Marbuah, 2013. "Modelling import demand behaviour in Ghana: a re-examination," Economics Bulletin, AccessEcon, vol. 33(1), pages 482-493.
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