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An Aggregator Model of Canadian Export Supply and Import Demand Responsiveness


  • Denis Lawrence


The aggregate Canadian technology is modeled by a GNP function with four export and four import components included by the use of aggregator functions and a two-stage estimation process. The recently developed symmetric generalized McFadden functional form is used at both the aggregator and GNP function levels. The aggregate export own-price elasticity is found to be 1.67 in 1970, while the import own-price demand elasticity is -1.62. Increases in the prices of both imports and labor are found to decrease the supply of exports, while exports are found to be complementary to the output of domestic sales supply.

Suggested Citation

  • Denis Lawrence, 1989. "An Aggregator Model of Canadian Export Supply and Import Demand Responsiveness," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 503-521, August.
  • Handle: RePEc:cje:issued:v:22:y:1989:i:3:p:503-21

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    References listed on IDEAS

    1. repec:cup:apsrev:v:60:y:1966:i:01:p:29-38_12 is not listed on IDEAS
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    3. Paul A. Samuelson, 2011. "The Collected Scientific Papers of Paul Samuelson," MIT Press Books, The MIT Press, edition 1, volume 7, number 0262015749 edited by Janice Murray, January.
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    Cited by:

    1. Kevin J. Fox & Ulrich Kohli & Alice Shiu, 2010. "Trade Agreements and Trade Opportunities: A Flexible Approach for Modeling Australian Export and Import Elasticities," Review of International Economics, Wiley Blackwell, vol. 18(3), pages 513-530, August.
    2. Yazid Dissou & Reza Ghazal, 2010. "Energy Substitutability in Canadian Manufacturing Econometric Estimation with Bootstrap Confidence Intervals," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 121-148.
    3. Buetre, Benjamin L. & Ahmadi-Esfahani, Fredoun Z., 1993. "Estimation of Factor Demand and Substitution in the Australian Pig Industry: A Dual Approach," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(02), August.
    4. Chen, Wen-Hao & Corak, Miles, 2005. "Firms, Industries, and Unemployment Insurance: An Analysis Using Employer-employee Data from Canada," Analytical Studies Branch Research Paper Series 2005260e, Statistics Canada, Analytical Studies Branch.
    5. Martin, Will J. & Warr, Peter G., 1994. "Determinants of agriculture's relative decline: Thailand," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 11(2-3), December.
    6. Kohli, Ulrich, 1998. "Semiflexibility vs. flexibility: U.S. imports and exports by commodity group," International Review of Economics & Finance, Elsevier, vol. 7(1), pages 1-21.
    7. Aboagye, Anthony Q. & Gunjal, Kisan, 2000. "An analysis of short-run response of export and domestic agriculture in sub-Saharan Africa," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(1), June.
    8. Corak, Miles & Chen, Wen-Hao, 2003. "Firms, Industries, and Unemployment Insurance: An Analysis Using Employer-Employee Data," IZA Discussion Papers 811, Institute for the Study of Labor (IZA).
    9. Peeters, Ludo & Surry, Yves, 1993. "Estimating feed utilisation matrices using a cost function approach," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 9(2), August.
    10. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
    11. Newman, John L. & Lavy, Victor & de Vreyer, Philippe, 1995. "Export and output supply functions with endogenous domestic prices," Journal of International Economics, Elsevier, vol. 38(1-2), pages 119-141, February.
    12. Nguyen, Duong T.M. & McLaren, Keith Robert & Zhao, Xueyan, 2008. "Multi-Output Broadacre Agricultural Production: Estimating A Cost Function Using Quasi-Micro Farm Level Data From Australia," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6009, Australian Agricultural and Resource Economics Society.
    13. Aboagye, Anthony Q. & Gunjal, Kisan, 2000. "An analysis of short-run response of export and domestic agriculture in sub-Saharan Africa," Agricultural Economics, Blackwell, vol. 23(1), pages 41-53, June.
    14. Martin, Will & Warr, Peter G., 1991. "Agriculture's decline in Indonesia : supply or demand determined," Policy Research Working Paper Series 798, The World Bank.
    15. Chen, Wen-Hao & Corak, Miles, 2005. "Entreprises, industries et assurance-chomage : une analyse des donnees sur les employeurs et les employes recueillies au Canada," Direction des etudes analytiques : documents de recherche 2005260f, Statistics Canada, Direction des etudes analytiques.
    16. Chapda Nana, Guy & Larue, Bruno & Gervais, Jean-Philippe, 2012. "Regional integration and dynamic adjustments: Evidence from gross national product functions for Canada and the United States," The North American Journal of Economics and Finance, Elsevier, vol. 23(2), pages 246-264.

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