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UK Exports of Manufactures: The Role of Supply Side Factors

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  • Holly, Sean
  • Wade, Keith

Abstract

The authors estimate a model of U.K. exports of manufactures, separating supply and demand effects, in order to test whether the supply side reforms of the 1980s have improved export performance. M. Landesmann and A. Snell (1989) have argued recently that the income elasticity of the demand for U.K. exports has increased over the 1980s. The authors find the income elasticity has fallen. They can explain Landesmann and Snell's results if their model can be interpreted as an unrestricted reduced form. Then it is the rise in the supply price elasticity that explains the rise in the reduced-form effects of world trade on exports. Copyright 1991 by Scottish Economic Society.

Suggested Citation

  • Holly, Sean & Wade, Keith, 1991. "UK Exports of Manufactures: The Role of Supply Side Factors," Scottish Journal of Political Economy, Scottish Economic Society, vol. 38(1), pages 1-18, February.
    • Handle: RePEc:bla:scotjp:v:38:y:1991:i:1:p:1-18
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    Cited by:

    1. Branimir Jovanovic, 2013. "Aggregation Bias in Trade Elasticities: The Case of Macedonia," FIW Working Paper series 106, FIW.
    2. Jovanovic, Branimir, 2009. "Should the Macedonian denar be devalued? Some evidence from the trade equations," SEER Journal for Labour and Social Affairs in Eastern Europe, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 12(3), pages 339-368.
    3. Clostermann, Jörg, 1996. "Der Einfluß des Wechselkurses auf die deutsche Handelsbilanz," Discussion Paper Series 1: Economic Studies 1996,07, Deutsche Bundesbank.
    4. Jakob Madsen, 1998. "Errors-in-variables, supply side effects, and price elasticities in foreign trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(4), pages 612-637, December.
    5. Sinha Roy, Saikat, 2007. "Demand and Supply Factors in the Determination of India's Disaggregated Manufactured Exports: A Simultaneous Error-Correction Aprroach," MPRA Paper 68589, University Library of Munich, Germany.
    6. Clostermann, Jörg, 1996. "The impact of the exchange rate on Germany's balance of trade," Discussion Paper Series 1: Economic Studies 1996,07e, Deutsche Bundesbank.
    7. Kostas Tsekouras & Dimitris Skuras, 2005. "Productive efficiency and exports: an examination of alternative hypotheses for the Greek cement industry," Applied Economics, Taylor & Francis Journals, vol. 37(3), pages 279-291.

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