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The Adjustment of Canadian Import Demand to Changes in Income, Prices, and Exchange Rates

Author

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  • Timothy A. Deyak
  • W. Charles Sawyer
  • Richard L. Sprinkle

Abstract

This paper provides estimates of the sensitivity of Canadian import demand to changes in income, prices, and exchange rates. The model specification allows for the consideration of long-run elasticities as well as the dynamics of short-run adjustment of imports to changes in these variables. The estimated long-run elasticities obtained are similar to those in previous studies. It is also shown that Canadian imports react quickly to changes in either foreign or domestic prices, but that the reaction to changes in exchange rates is much slower.

Suggested Citation

  • Timothy A. Deyak & W. Charles Sawyer & Richard L. Sprinkle, 1993. "The Adjustment of Canadian Import Demand to Changes in Income, Prices, and Exchange Rates," Canadian Journal of Economics, Canadian Economics Association, vol. 26(4), pages 890-900, November.
  • Handle: RePEc:cje:issued:v:26:y:1993:i:4:p:890-900
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    Citations

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    Cited by:

    1. Vaona, Andrea, 2016. "The effect of renewable energy generation on import demand," Renewable Energy, Elsevier, vol. 86(C), pages 354-359.
    2. Thomas Reininger, 2008. "Factors Driving Import Demand in Selected Central, Eastern and Southeastern European Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 100-125.
    3. Santos-Paulino, Amelia U., 2002. "The Effects of Trade Liberalization on Imports in Selected Developing Countries," World Development, Elsevier, vol. 30(6), pages 959-974, June.
    4. Mah, Jai S., 2000. "An empirical examination of the disaggregated import demand of Korea--the case of information technology products," Journal of Asian Economics, Elsevier, vol. 11(2), pages 237-244.
    5. Pavel Kadochnikov, 2006. "An Analysis of Import Substitution in Russia after the 1998 Crisis," Research Paper Series, Gaidar Institute for Economic Policy, issue 95, pages 148-148.
    6. Daniel Pick & Carlos Arnade & Utpal Vasavada, 1995. "Technology gaps and trade in agriculture," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 131(3), pages 509-525, September.
    7. Efthymios Tsionas & Dimitris Christopoulos, 2004. "International Evidence on Import Demand," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 31(1), pages 43-53, March.
    8. Jaime R. Marquez, 1995. "A century of trade elasticities for Canada, Japan, and the United States," International Finance Discussion Papers 531, Board of Governors of the Federal Reserve System (U.S.).
    9. Robert A. Amano & Tony S. Wirjanto, "undated". "The Dynamic Behaviour of Canadian Imports and the Linear-Quadratic Model: Evidence Based on the Euler Equation," Staff Working Papers 94-6, Bank of Canada.
    10. Amano, Robert A. & Wirjanto, Tony S., 1997. "Adjustment costs and import demand behavior: evidence from Canada and the United States," Journal of International Money and Finance, Elsevier, vol. 16(3), pages 461-476, June.

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