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Explaining Nigeria's import demand behaviour: a bound testing approach

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  • M. Adetunji Babatunde
  • Festus O. Egwaikhide

Abstract

Purpose - The purpose of this paper is to present an empirical analysis of the aggregated import demand behavior for Nigeria using annual data between 1980 and 2006. Design/methodology/approach - The bounds test analysis was used to estimate the long‐run relationship between imports and its determinants. Findings - Test results show that imports, income and relative prices are cointegrated. The estimated long‐run elasticities of import demand with respect to income and relative prices are 2.48 and −0.133, respectively. Originality/value - These results suggest that the Marshall‐Lerner condition are not satisfied for Nigeria.

Suggested Citation

  • M. Adetunji Babatunde & Festus O. Egwaikhide, 2010. "Explaining Nigeria's import demand behaviour: a bound testing approach," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 9(2), pages 167-187, July.
    • Handle: RePEc:eme:ijdipp:v:9:y:2010:i:2:p:167-187
    DOI: 10.1108/14468951011062354
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    5. Philip Chimobi Omoke, 2012. "Bank Credit and Aggregate Import Demand in Nigeria: A Cointegration Analysis," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 28-37, June.
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    7. AYODOTUN, Ayorinde & FARAYIBI, Adesoji, 2016. "An Empirical Analysis of the Structure of Imports in Sub-Sahara Africa," MPRA Paper 73278, University Library of Munich, Germany.
    8. Mohamed Ibrahim Mugableh, 2017. "Estimating Elasticity Function of Jordanian Aggregate Import Demand," Applied Economics and Finance, Redfame publishing, vol. 4(2), pages 33-37, March.
    9. AYODOTUN, Ayorinde & FARAYIBI, Adesoji, 2016. "Modelling the Determinants of Import Demand in Sub-Sahara Africa," MPRA Paper 73225, University Library of Munich, Germany.
    10. Adel Shakeeb MOHSEN, 2020. "Trade Liberalization and International Trade: A Case Study of China," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 4(1), pages 1-14.
    11. Mohsen Bahmani & Hanafiah Harvey & Scott W. Hegerty, 2013. "Empirical tests of the Marshall-Lerner condition: a literature review," Journal of Economic Studies, Emerald Group Publishing, vol. 40(3), pages 411-443, May.

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