Structural Breaks and Exports in the Philippines

2009 ◽  
Vol 9 (2) ◽  
pp. 1850168 ◽  
Author(s):  
Saten Kumar
Keyword(s):  
Price Elasticity ◽  
Structural Breaks ◽  
Income Elasticity ◽  
Real Income ◽  
The Philippines ◽  
Relative Price ◽  
Level Shift ◽  
Export Demand ◽  
Demand Equation ◽  
Relative Prices

This paper estimates the export demand equation for the Philippines using the Gregory and Hansen procedure. We allowed for structural breaks within the Gregory and Hansen framework and obtained a cointegrating relationship between real exports, real income and relative prices. Our preferred model is the level shift where all the coefficients are significant and plausible. The income elasticity of export demand is around unity and the relative price elasticity is around -1.2.

Competitive and Complementary Relations in International Travel: The Case of British Travel to Cyprus

2019 ◽  
Vol 10 (5) ◽  
pp. 395-420
Author(s):  
Petros Anastasopoulos ◽  
Keyword(s):  
Strong Association ◽  
International Travel ◽  
Relative Price ◽  
Annual Data ◽  
Export Demand ◽  
Relative Prices ◽  
Vector Error Correction ◽  
Vector Error ◽  
The Mediterranean ◽  
Demand Equations

This is an econometric analysis of demand for travel to Cyprus by Britons. We examined the competitive and complementary relations between travel to Cyprus and other well-established travel destinations in the Mediterranean basin. Because many package tours include several countries in their destinations within a given journey, and because individual travelers find it more advantageous to visit more than one country in a single trip, it may be meaningful to examine international travel within the contest of groups of countries rather than a single country competing for international travelers. Specifically, we provide an analysis of the competitive and complementary relations existing between the tourism sectors of Cyprus and that of Greece, Spain and Portugal for British travelers. We provide estimates of income and relative price elasticities based of export demand equations upon annual data from 1980-2016. We tested for the stationarity of the variables and derived estimates of the Vector Error Correction Model (VECM). These tests confirm a strong association between the incomes of Britons and their decision to travel to Cyprus. Furthermore, we show the relative prices between Cyprus and other competing destinations in the Mediterranean to play an important role in determining British travel to Cyprus.

scholarly journals Relative Prices and Relative Prosperity

2007 ◽  
Vol 97 (3) ◽  
pp. 562-585 ◽  
Author(s):  
Chang-Tai Hsieh ◽  
Peter J Klenow
Keyword(s):  
Real Income ◽  
Relative Price ◽  
Relative Prices ◽  
Income Levels ◽  
Poor Countries ◽  
Investment Rates ◽  
Tariff Rates ◽  
Low Efficiency ◽  
Investment Goods ◽  
Real Investment

The positive correlation between real investment rates and real income levels across countries is driven largely by differences in the price of investment relative to output. The high relative price of investment in poor countries is due to the low price of consumption goods in those countries. Investment prices are no higher in poor countries. Thus, the low real investment rates in poor countries are not driven by high tax or tariff rates on investment. Poor countries, instead, appear to be plagued by low efficiency in producing investment goods and in producing consumer goods to trade for them. (JEL E22, E23, O16, O47)

On Planning in Pakistan (Review Article)

1964 ◽  
Vol 4 (1) ◽  
pp. 107-121
Author(s):  
Aftab Ahmad Khan
Keyword(s):  
Price Elasticity ◽  
Plant Protection ◽  
Weather Conditions ◽  
Relative Price ◽  
Protection Measures ◽  
Relative Prices ◽  
Basic Body ◽  
Rice Yields ◽  
One Year ◽  
Agricultural Yields

During the past decade, increasing attention has been given to the role of agriculture in the process of economic development. One aspect of the discus¬sion has concerned the significance of relative prices for farmer in decision¬making. Recent studies have yielded estimates of supply elasticities for jute in East Pakistan, and for cotton, wheat, and several other crops in West Pak¬istan, so that a basic body of information is beginning to emerge. The main purpose of this note is to supplement these studies by presenting estimates of the price elasticity of supply for rice in East Pakistan. However, since rice and jute are the main alternate crops in East Pakistan, supply elasticities for jute will also be presented. Because of fluctuations in agricultural yields due to variations in weather conditions, the acreage response to price has generally been estimated rather than the output response. Significant changes in the size and timing of the monsoon rains in East Pakistan make it particularly important in this case to use acreage changes as a measure of farmer response to price. Inputs others than land, such as fertilizers, better seeds, and plant-protection measures are not widely used in East Pakistan; and apparently, these measures are not very responsive to price changes. At least, no statistically significant relationship exists between the relative price of rice (to jute) in one year and rice yields in the next year. An increased price for rice results in an extension of rice acreage,) but it does not result in significantly more intensive cultivation. Under these conditions, the price elasticity of acreage closely approximates the elasticity of planned output2

scholarly journals A Note on Farmer Response to Price in East Pakistan

1964 ◽  
Vol 4 (1) ◽  
pp. 93-106 ◽  
Author(s):  
Syed Mushtaq Hussain
Keyword(s):  
Price Elasticity ◽  
Plant Protection ◽  
Weather Conditions ◽  
Relative Price ◽  
Protection Measures ◽  
Relative Prices ◽  
Basic Body ◽  
Rice Yields ◽  
One Year ◽  
Agricultural Yields

During the past decade, increasing attention has been given to the role of agriculture in the process of economic development. One aspect of the discus¬sion has concerned the significance of relative prices for farmer in decision¬making. Recent studies have yielded estimates of supply elasticities for jute in East Pakistan, and for cotton, wheat, and several other crops in West Pak¬istan, so that a basic body of information is beginning to emerge. The main purpose of this note is to supplement these studies by presenting estimates of the price elasticity of supply for rice in East Pakistan. However, since rice and jute are the main alternate crops in East Pakistan, supply elasticities for jute will also be presented. Because of fluctuations in agricultural yields due to variations in weather conditions, the acreage response to price has generally been estimated rather than the output response. Significant changes in the size and timing of the monsoon rains in East Pakistan make it particularly important in this case to use acreage changes as a measure of farmer response to price. Inputs others than land, such as fertilizers, better seeds, and plant-protection measures are not widely used in East Pakistan; and apparently, these measures are not very responsive to price changes. At least, no statistically significant relationship exists between the relative price of rice (to jute) in one year and rice yields in the next year. An increased price for rice results in an extension of rice acreage,) but it does not result in significantly more intensive cultivation. Under these conditions, the price elasticity of acreage closely approximates the elasticity of planned output2

scholarly journals Analysis of Turkey’s Export and Import Demand Functions within the Context of Foreign Trade with Russia

2013 ◽  
Author(s):  
Rüştü Yayar ◽  
Yunus Emre Birol ◽  
Yusuf Demir
Keyword(s):  
Central Bank ◽  
Foreign Trade ◽  
Price Elasticity ◽  
Import Demand ◽  
Export Demand ◽  
Turkish Republic ◽  
Relative Prices ◽  
Demand Functions ◽  
International Money ◽  
The Russian Federation

The main purpose of this study is to analyze the foreign trade of Russia and Turkey. Considering the foreign trade volume between the two countries, an experimental study was carried out to determine export and import demand functions of Turkey. The Russian Federation has been one of the countries having an important part in export of Turkey. Whereas textile products have taken the first place within the export of Turkey, petroleum gas and natural gas have taken the first place in import. The data used in the study covered the period between 1995 and 2010 quarterly. The data were obtained from Turkish Republic Central Bank, International Money Fund, Russian Central Bank and Russian Federal Statistics Service databases. According to obtained results, export of Turkey to Russia has affected more from the income of Russia rather than the relative prices, and import of Turkey from Russia has affected more from the income of Turkey rather than the relative prices. When income and price elasticity of export and import demands were analyzed, income and price elasticity of the export demand was noticed as being greater than the income and price elasticity of the import demand.

scholarly journals Relative Prices and Sectoral Productivity

2019 ◽  
Vol 18 (3) ◽  
pp. 1400-1443 ◽  
Author(s):  
Margarida Duarte ◽  
Diego Restuccia
Keyword(s):  
Income Elasticity ◽  
Service Industries ◽  
Relative Price ◽  
Aggregate Productivity ◽  
Substantial Impact ◽  
Relative Prices ◽  
Income Elasticities ◽  
Negative Income ◽  
Sectoral Productivity ◽  
Cross Country

Abstract The relative price of services rises with development. A standard interpretation of this fact is that productivity differences across countries are larger in manufacturing than in services. The service sector comprises heterogeneous categories and we document that many disaggregated service categories feature a negative income elasticity of relative prices. We divide service industries into two broad categories based on the income gradient of its relative price: traditional services with positive income elasticities and nontraditional services with negative income elasticities of relative prices. Using an otherwise standard multisector development accounting framework extended to include an input–output structure, we find that the cross-country income elasticity of sectoral productivity is large in nontraditional services (1.15), smaller in manufacturing (1.05), and much smaller in traditional services (0.67). Eliminating cross-country productivity differences in nontraditional services reduces aggregate income disparity by 58%, a 7.9-fold reduction in aggregate productivity differences. Heterogeneity between traditional and nontraditional services also has a substantial impact on aggregate productivity.

Estimation of the income and price elasticity of pharmaceutical import demand in Iran

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seyed Alireza Otobideh ◽  
Shahram Moeeni ◽  
Yousef Mohammadzadeh ◽  
Bahlol Rahimi ◽  
Hosein Shabaninejad ◽  
...  
Keyword(s):  
Price Elasticity ◽  
Income Elasticity ◽  
Positive Impact ◽  
Pharmaceutical Products ◽  
Import Demand ◽  
Relative Price ◽  
Trade Policies ◽  
Economic Policies ◽  
Content Type

Purpose Investigating the import of pharmaceutical products, as one of the essential goods of the country to improve health and medical conditions, is important in accelerating the economic growth and enhancing the welfare of the community. This paper aims to estimate the income and price elasticity of pharmaceutical import demand in Iran. Design/methodology/approach In this research, the function of Iran's pharmaceutical import demand was estimated and calculated using the co-integration method and error correction techniques with the seasonal data of 2005–2016 to identify factors related to import, as well as relevant price, and income elasticity. Findings The research results showed that the price elasticity of Iran's long-term pharmaceutical import demand was 0.04; that is, the rate of pharmaceutical import demanded by Iran was not sensitive to change in relative price. Additionally, the long-term income elasticity of Iran's pharmaceutical demand was 0.69, meaning that an increase in Iran's income did not have a highly positive impact on the volume of Iran's pharmaceutical import. Originality/value Estimating the function of the demand for pharmaceutical import may pave the way to adopt appropriate economic policies. Furthermore, estimating this function and calculating income and price elasticity is a step toward minimizing government expenditures and can be a great contribution in designing trade policies.

scholarly journals EXPLORING CROSS-COUNTRY VARIATION IN GOVERNMENT SHARES: WHAT CAN WE LEARN FROM RELATIVE PRODUCTIVITIES?

2012 ◽  
Vol 17 (2) ◽  
pp. 356-372 ◽  
Author(s):  
Maksym Obrizan
Keyword(s):  
Relative Price ◽  
Total Output ◽  
Government Consumption ◽  
Strong Negative Correlation ◽  
Empirical Observation ◽  
Relative Prices ◽  
Neoclassical Growth Model ◽  
Poor Countries ◽  
Cross Country ◽  
Neoclassical Growth

Government shares in total output are characterized by significant variation across countries. I noticed a strong negative correlation between government consumption shares and the price of government services in terms of private consumption. Motivated by this empirical observation, I developed a neoclassical growth model with added government that is capable of matching the variation in government shares very closely using only relative prices. In addition, I provide empirical evidence showing that the relative price of government consumption increases with income, which is consistent with distortions prevailing in poor countries. These two observations combined imply that government shares tend to be higher in poorer countries.

scholarly journals Brazilian sawn wood price and income elasticity

CERNE ◽  
2010 ◽  
Vol 16 (3) ◽  
pp. 259-265
Author(s):  
Rommel Noce ◽  
José Luiz Pereira de Rezende ◽  
Agostinho Lopes de Souza ◽  
Lourival Marin Mendes ◽  
Márcio Lopes da Silva ◽  
...  
Keyword(s):  
Price Elasticity ◽  
Income Elasticity ◽  
Wood Panels ◽  
Significance Levels ◽  
Cross Price Elasticity ◽  
The Cross ◽  
Wood Demand

This study estimated the sawn wood demand price and income elasticity. Specifically it was estimated the price elasticity of sawn wood, the cross price elasticity of wood panels and the income elasticity of Brazilian GDP. A log-log model with correction through outline of the mobile average (MA(1)) was used, adjusted for the period of 1971 to 2006, which showed to be stable, with satisfactory significance levels. It was observed that sawn wood demand is inelastic in relation to price and elastic in relation to income.

scholarly journals Energy Diversification and Economic Development in Emergent Countries: Evidence From Fourier Function-Driven Bootstrap Panel Causality Test

2021 ◽  
Vol 9 ◽  
Author(s):  
Veli Yilanci ◽  
Ilham Haouas ◽  
Onder Ozgur ◽  
Samuel Asumadu Sarkodie
Keyword(s):  
Economic Development ◽  
Structural Breaks ◽  
Developing Economies ◽  
The Philippines ◽  
Annual Data ◽  
Wealth Creation ◽  
Causality Test ◽  
Panel Causality ◽  
Emerging Nations ◽  
Fourier Function

Energy is a crucial development indicator of production, consumption, and nation-building. However, energy diversification highlighting renewables remains salient in economic development across developing economies. This study explores the economic impact of renewables (RE) and fossil fuel (NRE) utilization in 17 emerging nations. We use annual data with timeframe between 1980 and 2016 and propose a bootstrap panel causality approach with a Fourier function. This allows the examination of multiple structural breaks, cross-section dependence, and heterogeneity across countries. We validate four main hypotheses on the causal links attached to the energy consumption (EC)-growth nexus namely neutrality, conservation, growth, and feedback hypotheses. The findings reveal a causal relationship running from RE to GDP for Brazil, Egypt, Indonesia, Korea, Pakistan, and the Philippines, confirming the growth hypothesis. Besides, the results validate the conservation hypothesis with causality from GDP to RE for China, Colombia, Egypt, Greece, India, Korea, South Africa, and Turkey. We identify causality from NRE to GDP for Pakistan, Mexico, Malaysia, Korea, India, Greece, Egypt, and Brazil; and from GDP to NRE for Thailand, Peru, Malaysia, India, Greece, Egypt, and Colombia. We demonstrate that wealth creation can be achieved through energy diversification rather than relying solely on conventional energy sources.

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