Econometric Evidence on LDC Exports: A Contribution to the Hong Kong Debate
This paper argues that previous empirical work on the explanation for Hong Kong's export Growth, by focusing on the values of the estimated price and income elasticities, has failed to provide a full account. It is necessarily also to look at changes in the explanatory variables in the model, both their signs and their magnitudes: a large change in a variable with a small elasticity may explain more than a small change in one with a large elasticity.
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