Determinants of Sectoral Import in Manufacturing Industry: A Panel Data Analysis
This paper investigates determinants of sectoral import in Turkey’s manufacturing industry over a sample from 1998Q1 to 2012Q2 by using Augmented Mean Group analysis which is introduced by Eberhardt and Teal (2008) and developed by Eberhardt and Bond (2009). The model takes into account parameter heterogeneity and cross-sectional dependence. Cross-sectional dependence is tested by CD-Bias test of Pesaran (2008), while Cross-Sectionally Augmented Dickey-Fuller (CADF) test proposed by Pesaran (2007) is employed for testing for the presence of a unit root and cointegration among the variables is tested by using the methodology of Westerlund (2008). The regression results indicate that elasticities of import demand with respect to industrial production are different at sectoral level and coefficients of real exchange rate are significant and positive for almost all of the sectors. It is seen that the sectors with highest elasticities of import demand with respect to industrial production are basic metals, motor vehicles, eletrical machinery and textiles. Also, working day variable and crisis dummy are used to explore the impact of calendar day effect and global crisis.
Volume (Year): 14 (2014)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://iibf.ege.edu.tr/ENG/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tuck Cheong Tang, 2008. "Aggregate Import Demand Function for Japan: A Cointegration Re-investigation," Global Economic Review, Taylor & Francis Journals, vol. 37(3), pages 363-377.
- Westerlund Joakim, 2006.
"Panel Cointegration Tests of the Fisher Effect,"
054, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- M. Hashem Pesaran, 2007.
"A simple panel unit root test in the presence of cross-section dependence,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
- Pesaran, M.H., 2003. "A Simple Panel Unit Root Test in the Presence of Cross Section Dependence," Cambridge Working Papers in Economics 0346, Faculty of Economics, University of Cambridge.
- Anisul Islam & M. Kabir Hassan, 2004. "An econometric estimation of the aggregate import demand function for Bangladesh: some further results," Applied Economics Letters, Taylor & Francis Journals, vol. 11(9), pages 575-580.
- Zelal Kotan & Mesut Saygili, 1999. "Estimating an Import Function for Turkey," Discussion Papers 9909, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Yan Zhou & Smile Dube, 2011. "Import Demand Functions: Evidence From Cibs," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(4), pages 73-96, December.
- Ivohasina Fizara Razafimahefa & Shigeyuki Hamori, 2005. "Import Demand Function: Some Evidence from Madagascar and Mauritius," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(3), pages 411-434, September.
- Ertan Oktay & Giray Gozgor, 2013. "Estimation of disaggregated import demand functions for Turkey," Economics Bulletin, AccessEcon, vol. 33(1), pages 575-585.
- Tuck Cheong Tang, 2005. "Revisiting South Korea's Import Demand Behavior: A Cointegration Analysis ," Asian Economic Journal, East Asian Economic Association, vol. 19(1), pages 29-50, 03.
When requesting a correction, please mention this item's handle: RePEc:ege:journl:v:14:y:2014:i:2:p:271-281. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Baris Gök)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.