The Determinants of Import Demand: A Review of International Literature
Keywords:
Foreign Trade; Import demand; DeterminantsAbstract
This paper provides a review of theoretical and empirical literature on the key determinants of import demand in developing and developed countries. On the whole, the findings of the studies reviewed in this paper show that the determinants of import demand differ from country to country and over time, and depend on the proxies used to measure import demand. Also, the findings confirmed that the key drivers of import demand depend on whether the income variable is used as a single variable or is disaggregated into different components. In general, the majority of the studies found that income and relative import price are the key determinants of import demand – although the nature of the impact of these factors differs from country to country.
References
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2) Abrishamii, H. and Mehrara, M. (2000). ARDL Approach To The Demand for Disaggregate Import: The Case of Iran. Iranian Economic Review, 7(7), 87-109.
3) Anaman, KA. and Buffong. SM. (2001). Analysis of Determinants of Aggregate Import Demand in Brunei Darussalam for 1964 to 1997. Asian economic Journal 15(1), 61-70.
4) Arize, AC and Osang, T. (2007). Foreign Exchange Reserves and Import Demand: Evidence from Latin America. The World Economy, 30, 1477-1489.
5) Baek, J. (2015). Empirical Evidence on Korea’s Import Demand Behaviour Revisited. Research in Applied Economics, 7(2), 11-20.
6) Bathalomew, D. (2010). An Econometric Estimation of the Aggregate Import Demand Function for Sierra Leone, Journal of Monetary and Economic Integration, 10 (4), 5-24.
7) Budha, B. (2014). The Role of Expenditure Components in Nepal’s Import from India. South Asia Economic Journal, 15(1), 37-54.
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10) Dutta, D. and Ahmed, N. (2006). An Aggregate Import Demand Function for India: A Co-integration Analysis. Applied Economic Letter, 11(10), 607-613.
11) Englama, A., Oputa, NC., Sanni, GK., Yakub, MU., Adesanya, O., and Sani, Z. (2013). An Aggregate Import Demand Function for Nigeria: An Auto-Regressive Distributed Lag (ARDL) Approach. Economic and Financial Review.51 (3)
12) Fukumoto, M. (2012). Estimation of China's disaggregate import demand functions. China Economic Review, 23(2),
13) Goldstein, M and Khan, M. (1985). Income and Price Effects in Foreign Trade, in Jones, RW. and Kenen. BP (Eds.), Handbook of International Economics, 2, 1041-1105.
14) Gumede, V. (2000). Import Demand Elasticities for South Africa: A Co-integration Analysis. Journal for Studies in Economics and Econometrics, 24, 21-37.
15) Hong, P. (1999). Import elasticities revisited. Discussion Paper No. 10, Department of Economic and Social Affairs, United Nations
16) Hoque, MM. and Yusop. Z. (2010). Impacts of Trade Liberalisation on Aggregate Import in Bangladesh: An ARDL Bounds test approach. Journal of Asian Economics, 21(1), 37-52.
17) Howard. M., (2002). Causality between exports, imports and income in Trinidad and Tobago. International Economic Journal, 16(4), 97-106.
18) Khan, S.A, Khan, S and Khai, U.Z. (2013). An Estimation of Disaggregate Import Demand Function for Pakistan. World Applied Sciences Journal, 21 (7), 1050-1056.
19) Mah, J.S. (2000). An Empirical Examination of the Disaggregated Import Demand of Korea—the case of information technology products. Journal of Asian Economics, 11(2), 237–244.
20) Modeste, N.C. (2011). An Empirical Analysis of the Demand for Imports in Three CARICOM Member Countries: An Application of the Bounds Test for Co-integration. The Review of Black Political Economy, 38 (1), 53-62.
21) Narayan, S and Narayan, D. (2010). Estimating Import and Export Demand Elasticities for Mauritius and South Africa. Australian Economic Papers, 49(3), 241-252.
22) Oteng-Abayie, E.F and Appiah, N. (2008). Estimating an Aggregate Import Demand Function for Ghana. Journal of Science and Technology, 29 (2), 54-62.
23) Pattichis.C.A. (1999). Price and Income Elasticities of Disaggregated Import Demand: Results from UECMs and An Application. Applied Economics, 31(9), 1061-1071.
24) Shuaibu, M.I. and Fatai, B.O. (2014). On the Stability of Nigeria’s Import Demand: Do Endogenous Structural Breaks Matter?. Journal of Reviews on Global Economics, 3, 228-240.
25) Sinha, D. and Sinha, T. (2000). An aggregate import demand function for Greece. Atlantic Economic Journal, 28(2), 196–209.
26) Tang, C. (2002). Aggregate Import Demand Behaviour for Indonesia: Evidence from Bounds Testing Approach. IIUM Journal of Economics and Management, 10(2), 1-21.
27) Tang. T. (2006). Co-integration Analysis on Japan’s Aggregate import demand function: does data frequency matter. Labuan Bulletin of International Business and Finance, 4.
28) Tennakeen, T. (2010). Price and Income Elasticities of Disaggregated Import Demand in Sri Lanka. Sri Lanka Journals Online, 40(1), 59-77.
29) Tsionas, E.G and Christopoulos, D.K. (2004). International Evidence on Import Demand. Empirica, 31(1), 43-53.
30) Uzunoz, M.Z and Akcay, Y. (2009). Factors Affecting the Import Demand of Wheat in Turkey. Bulgarian Journal of Agricultural Science, 15(1), 60-66.
31) Zhou, Y. and Dube, S. (2011). Import Demand Functions: Evidence from CIBS. Journal of economic development, 36(4), 73-96.
32) Mazumdar, J. (2001). Imported machinery and growth in LDCs. Journal of Development Economics, 65(1), 209–224.
2) Abrishamii, H. and Mehrara, M. (2000). ARDL Approach To The Demand for Disaggregate Import: The Case of Iran. Iranian Economic Review, 7(7), 87-109.
3) Anaman, KA. and Buffong. SM. (2001). Analysis of Determinants of Aggregate Import Demand in Brunei Darussalam for 1964 to 1997. Asian economic Journal 15(1), 61-70.
4) Arize, AC and Osang, T. (2007). Foreign Exchange Reserves and Import Demand: Evidence from Latin America. The World Economy, 30, 1477-1489.
5) Baek, J. (2015). Empirical Evidence on Korea’s Import Demand Behaviour Revisited. Research in Applied Economics, 7(2), 11-20.
6) Bathalomew, D. (2010). An Econometric Estimation of the Aggregate Import Demand Function for Sierra Leone, Journal of Monetary and Economic Integration, 10 (4), 5-24.
7) Budha, B. (2014). The Role of Expenditure Components in Nepal’s Import from India. South Asia Economic Journal, 15(1), 37-54.
8) Chen, SW. (2008). Long-run aggregate Import Demand Function in Taiwan: An ARDL Bounds Testing approach. Applied Economics Letters, 15, 731-735.
9) Chinn, M. (2003). Doomed to Deficit? Aggregate U.S. Trade Flows Re-examined. NBER WP # 9521
10) Dutta, D. and Ahmed, N. (2006). An Aggregate Import Demand Function for India: A Co-integration Analysis. Applied Economic Letter, 11(10), 607-613.
11) Englama, A., Oputa, NC., Sanni, GK., Yakub, MU., Adesanya, O., and Sani, Z. (2013). An Aggregate Import Demand Function for Nigeria: An Auto-Regressive Distributed Lag (ARDL) Approach. Economic and Financial Review.51 (3)
12) Fukumoto, M. (2012). Estimation of China's disaggregate import demand functions. China Economic Review, 23(2),
13) Goldstein, M and Khan, M. (1985). Income and Price Effects in Foreign Trade, in Jones, RW. and Kenen. BP (Eds.), Handbook of International Economics, 2, 1041-1105.
14) Gumede, V. (2000). Import Demand Elasticities for South Africa: A Co-integration Analysis. Journal for Studies in Economics and Econometrics, 24, 21-37.
15) Hong, P. (1999). Import elasticities revisited. Discussion Paper No. 10, Department of Economic and Social Affairs, United Nations
16) Hoque, MM. and Yusop. Z. (2010). Impacts of Trade Liberalisation on Aggregate Import in Bangladesh: An ARDL Bounds test approach. Journal of Asian Economics, 21(1), 37-52.
17) Howard. M., (2002). Causality between exports, imports and income in Trinidad and Tobago. International Economic Journal, 16(4), 97-106.
18) Khan, S.A, Khan, S and Khai, U.Z. (2013). An Estimation of Disaggregate Import Demand Function for Pakistan. World Applied Sciences Journal, 21 (7), 1050-1056.
19) Mah, J.S. (2000). An Empirical Examination of the Disaggregated Import Demand of Korea—the case of information technology products. Journal of Asian Economics, 11(2), 237–244.
20) Modeste, N.C. (2011). An Empirical Analysis of the Demand for Imports in Three CARICOM Member Countries: An Application of the Bounds Test for Co-integration. The Review of Black Political Economy, 38 (1), 53-62.
21) Narayan, S and Narayan, D. (2010). Estimating Import and Export Demand Elasticities for Mauritius and South Africa. Australian Economic Papers, 49(3), 241-252.
22) Oteng-Abayie, E.F and Appiah, N. (2008). Estimating an Aggregate Import Demand Function for Ghana. Journal of Science and Technology, 29 (2), 54-62.
23) Pattichis.C.A. (1999). Price and Income Elasticities of Disaggregated Import Demand: Results from UECMs and An Application. Applied Economics, 31(9), 1061-1071.
24) Shuaibu, M.I. and Fatai, B.O. (2014). On the Stability of Nigeria’s Import Demand: Do Endogenous Structural Breaks Matter?. Journal of Reviews on Global Economics, 3, 228-240.
25) Sinha, D. and Sinha, T. (2000). An aggregate import demand function for Greece. Atlantic Economic Journal, 28(2), 196–209.
26) Tang, C. (2002). Aggregate Import Demand Behaviour for Indonesia: Evidence from Bounds Testing Approach. IIUM Journal of Economics and Management, 10(2), 1-21.
27) Tang. T. (2006). Co-integration Analysis on Japan’s Aggregate import demand function: does data frequency matter. Labuan Bulletin of International Business and Finance, 4.
28) Tennakeen, T. (2010). Price and Income Elasticities of Disaggregated Import Demand in Sri Lanka. Sri Lanka Journals Online, 40(1), 59-77.
29) Tsionas, E.G and Christopoulos, D.K. (2004). International Evidence on Import Demand. Empirica, 31(1), 43-53.
30) Uzunoz, M.Z and Akcay, Y. (2009). Factors Affecting the Import Demand of Wheat in Turkey. Bulgarian Journal of Agricultural Science, 15(1), 60-66.
31) Zhou, Y. and Dube, S. (2011). Import Demand Functions: Evidence from CIBS. Journal of economic development, 36(4), 73-96.
32) Mazumdar, J. (2001). Imported machinery and growth in LDCs. Journal of Development Economics, 65(1), 209–224.
Published
2020-09-07
How to Cite
Vacu, N., & Odhiambo, N. (2020). The Determinants of Import Demand: A Review of International Literature : Array. Acta Universitatis Danubius. Œconomica, 16(5). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/514
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Business Administration and Business Economics
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