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U.S. Import Supply Behavior: Evidence from the 1980s

Author

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  • Catherine Carey

    (Western Kentucky University)

Abstract

Import supply has received insufficient attention in previous empirical studies of trade behavior. This study proposes an alternative way of estimating import supply and demand functions. Using 2SLS and disaggregated panel data more information from the supply side of international trade is incorporated into the model. The results raise questions about the relevance of the assumption of infinite import supply elasticities. While rising relative (foreign to U.S.) wages dampen import growth, increasing foreign investment by U.S. competitors increases U.S. imports.

Suggested Citation

  • Catherine Carey, 1997. "U.S. Import Supply Behavior: Evidence from the 1980s," Eastern Economic Journal, Eastern Economic Association, vol. 23(2), pages 139-149, Spring.
  • Handle: RePEc:eej:eeconj:v:23:y:1997:i:2:p:139-149
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume23/V23N2P139_149.pdf
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    Citations

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    Cited by:

    1. Taylor, Christopher T., 2004. "The economic effects of withdrawn antidumping investigations: is there evidence of collusive settlements?," Journal of International Economics, Elsevier, vol. 62(2), pages 295-312, March.
    2. Zimmerman, Paul R. & Carlson, Julie A., 2012. "Critical import supply elasticities and the ‘imports-as-market-discipline’ hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 345-354.
    3. Hasnat, Baban, 2002. "The impact of core labour standards on exports," International Business Review, Elsevier, vol. 11(5), pages 563-575, October.

    More about this item

    Keywords

    Import; International Trade; Trade;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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