An Aggregator Model of Canadian Export Supply and Import Demand Responsiveness.

The aggregate Canadian technology is modeled by a GNP function with four export and four import components included by the use of aggregator functions and a two-stage estimation process. The recently developed symmetric generalized McFadden functional form is used at both the aggregator and GNP function levels. The aggregate export own-price elasticity is found to be 1.67 in 1970, while the import own-price demand elasticity is -1.62. Increases in the prices of both imports and labor are found to decrease the supply of exports, while exports are found to be complementary to the output of domestic sales supply.