Cointegration Approach to Estimating Bilateral Trade Elasticities Between U.S. and Her Trading Partners

Almost all previous authors who estimated the trade elasticities relied upon aggregate trade data. To avoid the aggregation bias, this paper provides estimates of trade elasticities using bilateral data between the United States and her six largest trading partners. Application of cointegration analysis reveals that in many cases, bilateral trade elasticities are large enough to justify real depreciation of the dollar as a mean of improving U.S. trade balance.[F14]

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Year of publication:	1999
Authors:	Mohsen, Bahmani-Oskooee ; Brooks, Taggert
Published in:	International Economic Journal. - Taylor & Francis Journals, ISSN 1016-8737. - Vol. 13.1999, 4, p. 119-128
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005644236