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Import demand in developing countries

Listed author(s):
  • Faini, Riccardo
  • Pritchett, Lant
  • Clavijo, Fernando

As a less restrictive trade regime is associated with greater responsiveness to economic incentives, econometric evidence that does not allow for the impact of import controls cannot be used reliably to assess the effect of a devaluation on the trade balance. Indeed, devaluation combined with trade liberalization ( a common feature of many adjustment programs) will have a more pronounced effect onimport demand than available evidence would suggest. In this report, the authors compare three different approaches to modeling and estimating import demand.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 122.

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Date of creation: 30 Nov 1988
Handle: RePEc:wbk:wbrwps:122
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