An Empirical Analysis of the Demand for Imports in three CARICOM Member Countries: An Application of the Bounds Test for Cointegration

Nelson C. Modeste

12 citations0/0 files storedThe Review of Black Political Economy

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Global trade and economics Economics of Agriculture and Food Markets Economic Theory and Policy

Abstract

This paper provides fresh estimates of income and price elasticities of import demand in Guyana, Jamaica, and Trinidad and Tobago using a bounds test for cointegration. In addition, the paper also provides estimates of the consumption, investment, and exports elasticities of import demand. These latter elasticities were all found to be positive and statistically significant with values ranging from 0.16 to 0.55 in the long-run.

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References

2001Bounds testing approaches to the analysis of level relationships 2005The saving and investment nexus for China: evidence from cointegration tests 2006United Nations Statistics Division 1969Income and Price Elasticities in World Trade 2017Income and Price Effects in Foreign Trade 1986Handbook of international economics 2017Quantitative International Economics 2005An empirical analysis of Fiji's import demand function

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