Estimating import and export demand elasticities for Mauritius and South Africa
Narayan, Seema and Narayan, Paresh 2010, Estimating import and export demand elasticities for Mauritius and South Africa, Australian economic papers, vol. 49, no. 3, pp. 241-252.
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Title
Estimating import and export demand elasticities for Mauritius and South Africa
In this paper, we re-estimate the import and the export demand functions for Mauritius and South Africa using time series data. We use the bounds tests for cointegration and find evidence of a long-run relationship between import demand, income and prices for both countries. Our long run elasticities reveal that domestic income and relative prices have significant effects on the import demand for both countries, with income being the most important determinant. Furthermore, we find that while South Africa’s export demand is not responsive to relative prices or income; for Mauritius income is statistically significant.
Language
eng
Field of Research
140210 International Economics and International Finance
Socio Economic Objective
910399 International Trade not elsewhere classified