Separability and the modelling of international economic integration
Most models of the allocation of imports over suppliers adopt a two-stage (separable) procedure in which a total imports function is estimated prior to the function allocating imports over suppliers. This procedure is tested for five countries' imports of manufactures and found wanting in four of them. A more general model is proposed and estimated. It is used to estimate the effects of U.K. accession to the EEC on her exports to these countries. Exports to the EEC countries rose, but those elsewhere fell. Overall, accession is shown to have worsened the U.K.'s trade balance and gross output of manufactures.
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- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Winters, L Alan, 1984. "British Imports of Manufactures and the Common Market," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 103-18, March.
- Hickman, Bert G. & Lau, Lawrence J., 1973. "Elasticities of substitution and export demands in a world trade model," European Economic Review, Elsevier, vol. 4(4), pages 347-380, December.
- Fetherston, Martin & Moore, Barry & Rhodes, John, 1979. "EEC Membership and UK Trade in Manufactures: Commentary," Cambridge Journal of Economics, Oxford University Press, vol. 3(4), pages 399-407, December.
- Michael C. Deppler & Duncan M. Ripley, 1978. "The World Trade Model: Merchandise Trade," IMF Staff Papers, Palgrave Macmillan, vol. 25(1), pages 147-206, March.
- Barker, Terry S, 1977. "International Trade and Economic Growth: An Alternative to the Neoclassical Approach," Cambridge Journal of Economics, Oxford University Press, vol. 1(2), pages 153-72, June.
- Winters, L. Alan, 1984. "Separability and the specification of foreign trade functions," Journal of International Economics, Elsevier, vol. 17(3-4), pages 239-263, November.
- Breusch, T S & Pagan, A R, 1980. "The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 239-53, January.
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