A Method for Calculating Export Supply and Import Demand Elasticities

Stephen Tokarick

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Global trade and economics Monetary Policy and Economic Impact Economic Theory and Policy

Abstract

Trade elasticities are often needed in applied country work for various purposes and this paper describes a method for estimating import demand and export supply elasticities withoutusing econometrics. The paper reports empirical estimates of these elasticities for a large number of low, middle, and upper income countries. One task for which trade elasticities are needed is in developing exchange rate assessments and this paper shows how the estimated elasticities can be used for this purpose.

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References

1965The Structure of Simple General Equilibrium Models 2002Global trade, assistance, and production : The GTAP 5 Data Base 2008Import Demand Elasticities and Trade Distortions 1985Chapter 20 Income and price effects in foreign trade 1973The Balance of Payments 1976Price Elasticities in International Trade 1983International Trade and Resource Allocation 1991Technology, Duality, and Foreign Trade: The GNP Function Approach to Modeling Imports and Exports

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2011Armenia 2017The Increasing Irrelevance of Trade Diversion 2018The Effect of Real Exchange Rate on Trade Balance in a Resource-Rich Economy: The Case of Mongolia

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