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Estimation of China's disaggregate import demand functions

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  • Fukumoto, Mayumi

Abstract

We estimate the disaggregate import demand functions for three basic classes of goods as defined in the System of National Accounts (SNA): capital goods, intermediate inputs, and final consumption goods, and use the findings to shed light on the effects of China's economic growth on its current account. The results showed that as China switches from exports to domestic demand as a key driver for economic growth, China's trade surplus would be expected to shrink rather quickly.

Suggested Citation

  • Fukumoto, Mayumi, 2012. "Estimation of China's disaggregate import demand functions," China Economic Review, Elsevier, vol. 23(2), pages 434-444.
    • Handle: RePEc:eee:chieco:v:23:y:2012:i:2:p:434-444
    DOI: 10.1016/j.chieco.2012.03.002
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    5. Bernhardt, Thomas, 2014. "How promising is South-South trade as a contributor to economic development in Asia and South America? Insights from estimating income elasticities of import demand," MPRA Paper 56413, University Library of Munich, Germany.

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    More about this item

    Keywords

    Disaggregate import demand; China; Cointegration;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • F10 - International Economics - - Trade - - - General

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