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The Effects of Trade Liberalisation on Imports in Selected Developing Countries

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  • Amelia U. Santos-Paulino

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Abstract

This paper analyses the impact of the reduction of tariff and non-tariff barriers on the imports of selected developing countries, utilising dynamic panel data techniques. Domestic income and relative prices are found to be significant determinants of import growth. Additionally, the results indicate that import duties reduce import growth, but the effect varies according to the region and the type of trade policy regime existing in the country. The results also show that the elimination of trade policy distortions has a strong, positive impact on import growth. Lastly, it is found that income and price elasticities are higher as a result of trade policy reform.

Suggested Citation

  • Amelia U. Santos-Paulino, 2001. "The Effects of Trade Liberalisation on Imports in Selected Developing Countries," Studies in Economics 0110, School of Economics, University of Kent.
  • Handle: RePEc:ukc:ukcedp:0110
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    Cited by:

    1. Vaona, Andrea, 2016. "The effect of renewable energy generation on import demand," Renewable Energy, Elsevier, vol. 86(C), pages 354-359.
    2. Gozgor, Giray, 2014. "Aggregated and disaggregated import demand in China: An empirical study," Economic Modelling, Elsevier, vol. 43(C), pages 1-8.
    3. Antonis Adam & Margarita Katsimi & Thomas Moutos, 2012. "Inequality and the import demand function," Oxford Economic Papers, Oxford University Press, vol. 64(4), pages 675-701, October.
    4. Andrew Mold and Annalisa Prizzon, 2010. "Fragile States, Commodity Booms And Export Performance: An Analysis Of The Sub-Saharan African Case," RSCAS Working Papers 2010/21, European University Institute.
    5. Tang, Tuck Cheong, 2003. "An empirical analysis of China's aggregate import demand function," China Economic Review, Elsevier, vol. 14(2), pages 142-163.
    6. Vatthanamixay Chansomphou & Masaru Ichihashi, 2011. "The impact of trade openness on the incomes of four South East Asian countries before and after the Asian financial crisis," Economics Bulletin, AccessEcon, vol. 31(4), pages 2890-2902.
    7. Chris Jones & Oliver Morrissey, "undated". "Are Imports in Africa Responsive to Tariff Reductions?," Discussion Papers 08/02, University of Nottingham, CREDIT.
    8. Wang, Yi-Hsien & Lee, Jun-De, 2012. "Estimating the import demand function for China," Economic Modelling, Elsevier, vol. 29(6), pages 2591-2596.
    9. Knobel, Alexander, 2011. "Estimation of import demand function in Russia," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 24(4), pages 3-26.
    10. Adewuyi, Adeolu O., 2016. "Determinants of import demand for non-renewable energy (petroleum) products: Empirical evidence from Nigeria," Energy Policy, Elsevier, vol. 95(C), pages 73-93.
    11. Khuram Shafi & Liu Hua & Zahra Idrees & Amna Nazeer, 2015. "Exchange Rate Volatility and Macroeconomic War: A Comparative Study of India and Pakistan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(1), pages 257-269, January.
    12. Jones, Chris & Morrissey, Oliver & Nelson, Doug, 2011. "Did the World Bank Drive Tariff Reforms in Eastern Africa?," World Development, Elsevier, vol. 39(3), pages 324-335, March.
    13. Efthymios Tsionas & Dimitris Christopoulos, 2004. "International Evidence on Import Demand," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 31(1), pages 43-53, March.
    14. Fengbao Yin & Shigeyuki Hamori, 2011. "Estimating the import demand function in the autoregressive distributed lag framework: The case of China," Economics Bulletin, AccessEcon, vol. 31(2), pages 1576-1591.
    15. Andrea Vaona, 2013. "Import demand and renewable energy generation in 26 countries," Working Papers 07/2013, University of Verona, Department of Economics.
    16. Yi Wu & Li Zeng, 2008. "The Impact of Trade Liberalization on the Trade Balance in Developing Countries," IMF Working Papers 08/14, International Monetary Fund.
    17. Fukumoto, Mayumi, 2012. "Estimation of China's disaggregate import demand functions," China Economic Review, Elsevier, vol. 23(2), pages 434-444.

    More about this item

    Keywords

    trade liberalisation; import growth; dynamic panel data; time series/cross section; developing countries;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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