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Time‐series estimation of import demand functions for pulses in India

Author

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  • Frank W. Agbola
  • Maylene Y. Damoense

Abstract

Purpose - This study seeks to examine empirically import demand for total pulses, chickpeas and lentils in India based on the concept of unit root and cointegration. Design/methodology/approach - The Stock‐Watson dynamic OLS (DOLS) model – which is robust to small sample and eliminates simultaneity bias – is used to derive the long‐run price, income and urbanisation elasticities of import demand. The data covers the period 1970‐2000. Findings - Results indicate that real GDP, relative price and urbanisation are the key determinants of import demand for pulses in India. The estimated long‐run elasticities of import demand with respect to income (relative price) are 0.4 (−1.7) for chickpeas, 0.56 (−0.87) for lentils and 0.36 (0.00) for total pulses. The estimated long‐run elasticities of import demand with respect to urbanisation are 9.9 for chickpeas, zero for lentils and 7.2 for total pulses. The policy implications of the results are discussed. Originality/value - Provides evidence that the response of import demand for pulses to key determinants differ substantially from product to product.

Suggested Citation

  • Frank W. Agbola & Maylene Y. Damoense, 2005. "Time‐series estimation of import demand functions for pulses in India," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 32(2), pages 146-157, April.
    • Handle: RePEc:eme:jespps:01443580510600922
    DOI: 10.1108/01443580510600922
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    Citations

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    Cited by:

    1. Malefa Rose Malefane, 2023. "Dynamic Estimation of a Traditional Import Demand Function for Botswana," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(3), pages 436-448, September.
    2. Huseyin Kalyoncu & Fatih Yucel, 2006. "An analytical approach on defense expenditure and economic growth," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 33(5), pages 336-343, September.

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