scholarly journals Estimating Elasticity Function of Jordanian Aggregate Import Demand

2016 ◽  
Vol 4 (2) ◽  
pp. 33
Author(s):  
Mohamed Ibrahim Mugableh
Keyword(s):  
Demand Function ◽  
Policy Design ◽  
Exchange Rate Policy ◽  
Import Demand ◽  
Bounds Testing ◽  
Relative Prices ◽  
Long Run ◽  
Ardl Approach ◽  
Rate Policy ◽  
Bounds Testing Approach

This article estimates aggregate import demand function for Jordan using three fully co-integrating regressions over the (1980−2015) period. The bounds testing approach has been employed to test co-integration, while ARDL approach is used to analyze long-run elasticities. The results show a co-integration phenomenon among variables when import volume is dependent variable. In addition, the estimated long-run elasticities of import demand with respect to income and relative prices are 1.16 and -1.03, respectively. The understanding of import demand behavior is crucial for significant import forecasts, international trade planning, and exchange rate policy design.

An Empirical Analysis of Aggregate Import Demand Function for India

2017 ◽  
Vol 17 (4) ◽  
pp. 20170049
Author(s):  
Bibhuti Ranjan Mishra ◽  
Asit Mohanty
Keyword(s):  
Foreign Exchange ◽  
Demand Function ◽  
Import Demand ◽  
Likelihood Method ◽  
Domestic Activity ◽  
Relative Prices ◽  
Distributed Lag ◽  
Long Run ◽  
Cointegration Tests ◽  
The Stability

This paper examines the behaviour of Indian aggregate imports during the period 1980–81 to 2013–14. The stability of aggregate import demand function is examined using five types of cointegration tests including the ARDL bounds test. In order to estimate the long-run elasticities, we have applied three alternative fully efficient cointegrating regressions, autoregressive distributed lag (ARDL) model and Johansen maximum likelihood method. Our results reveal cointegration relationship between import demand, relative prices of import, domestic activity and foreign exchange reserves. Results evince that, in the long-run, the response of import demand to relative import prices is negative and less than unity, whereas it’s response to domestic activity/income is positive and more than unity. The foreign exchange reserve has a positive effect on imports.

An Empirical Investigation of the Disaggregated Import Demand Function: Non-linear ARDL Framework

2021 ◽  
pp. 001573252199516
Author(s):  
Khyati Kathuria ◽  
Nand Kumar
Keyword(s):  
Demand Function ◽  
Time Series Data ◽  
Import Demand ◽  
Series Data ◽  
Ardl Model ◽  
Relative Prices ◽  
Stable Relationship ◽  
Long Run ◽  
Non Linear ◽  
The Impact

The article estimates the disaggregated import demand function for India using annual time series data for the period 1995–2017. The empirical results reveal strong evidence of long-run stable relationship among the variables considered in the study. The disaggregated import demand function is estimated for India using linear and non-linear ARDL model. The estimated linear ARDL model shows that gross capital formation, exports and relative prices affect import demand positively and significantly, both in the short and long run. While the impact of final consumption expenditure was found to be insignificant in the short run, it affects import demand significantly and positively in the long run. On the other hand, the result of the non-linear ARDL model shows the evidence of asymmetry in the impact of relative prices (positive and negative changes) on import demand, both in the short and long run. JEL Codes: F41, B17, B41, C51

scholarly journals The Impact of Remittances on the Import Demand Function in Jordan: An ARDL Bounds Testing Approach

2018 ◽  
Vol 14 (10) ◽  
pp. 304
Author(s):  
Al-Abdulrazag Bashier
Keyword(s):  
Demand Function ◽  
Statistical Tests ◽  
Negative Relationship ◽  
Import Price ◽  
Import Demand ◽  
Economic Activities ◽  
Bounds Testing ◽  
Long Run ◽  
The Impact ◽  
Adf Test

The present study investigates the short- and long-run relationships between Jordan’s aggregate import demand function and its macroeconomic determinants, in addition to remittances. The study employs the autoregressive distributed lagged (ARDL) model to estimate the import function over the period 1975–2016. The preliminary statistical tests, the ADF test, confirmed that none of the variables is integrated of order 2, while the bounds testing provided evidence of the existence of a long-run equilibrium relationship between the included variables. Moreover, the diagnostic tests showed that the estimated model is free of the statistical problems. The long-run results indicated that remittances, inflation rate, and investment have a direct relationship with imports, whereas the import price index and FDI have a negative relationship. Based on these results, the study suggests that policymakers implement inflation reduction policies, increase the level of economic activities, and promote remittances inflows since they are mostly directed to investment.

Financial Development and Estimation of Import Demand Function in Pakistan: Evidence from Combined Cointegration and Causality Tests

2017 ◽  
Vol 18 (1) ◽  
pp. 118-131 ◽  
Author(s):  
Muhammad Ahad ◽  
Talat Afza ◽  
Muhammad Shahbaz
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Demand Function ◽  
Import Demand ◽  
Import Prices ◽  
Relative Prices ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Causality Tests ◽  
The Relationship

This article explores the relationship between financial development and imports focusing on economic growth and import prices as potential contributors to this relationship. We have applied combined cointegration and causality tests using multivariate model for long-run and augmented Dickey–Fuller (ADF) as well as Phillips–Perron (PP) unit root to test the order of integration of the variables. The empirical evidence confirms the presence of a long-run relationship among the series. Financial development increases imports demand. Economic growth and imports prices decrease imports consumption. Imports are negatively affected by relative prices.

scholarly journals THE FORECASTING BUDGET REVENUES IN ARDL APPROACH: A CASE OF UZBEKISTAN

2019 ◽  
pp. 6-12
Author(s):  
Fayziev R. A. ◽  
Khudoykulov S. K. ◽  
Rajapov Sh. Z. ◽  
Axmadjonov A. A.
Keyword(s):  
Bounds Testing ◽  
Ardl Model ◽  
Total Budget ◽  
Dynamic Relationship ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach

This paper contribute to the forecasted total budget revenues in Uzbekistan. It is aim to investigate long run and short run relationship between number of registered company, total number of taxpayers and forecasted total budget revenues from 1998 and 2017. More specifically, this dynamic relationship using bounds testing approach to co integration and the ARDL model. The main empirical findings indicate the existence of directional relationship between the number of registered company and forecasted total budget revenues in short run and long run. This mean that increase the number of registered company leads to go up forecasted total budget revenues. However, a unidirectional relationship between the total number of taxpayers and forecasted total budget revenues are confirmed in the long run and short run.

The real equilibrium exchange rate in a commodity­exporting economy: the experience of Azerbaijan

2021 ◽  
pp. 25-38
Author(s):  
Vusal Gasimli ◽  
Vusala Jafarova
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Oil Prices ◽  
Exchange Rate Policy ◽  
Current Account Balance ◽  
Equilibrium Exchange Rate ◽  
Long Run ◽  
Equilibrium Exchange ◽  
Rate Policy ◽  
Relative Productivity

The case of Azerbaijan serves to study the adequacy of exchange-rate policy in a resource-rich economy. This paper analyses the behavior of Azerbaijan’s external accounts over the past twenty years. Declining oil prices made an existing exchange-rate peg unsustainable and led to a large devaluation in 2015. Since then, the current account balance has improved, but by less than expected. We use the EBA-Lite method to derive regression-based estimates of the equilibrium real exchange rate, and relate misalignments to measures of “policy gaps”. Our findings suggest that only a few years after the devaluation, Azerbaijan’s currency has once more become overvalued. Moreover, the equilibrium real exchange rate is volatile and hardly compatible with a long-run exchange rate peg. Exchange rate policy should try to accommodate shifts in the fundamental determinants such as relative productivity and real oil prices.

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