Estimating Long-Run Elasticities of Jordanian Import Demand Function : 1980-2004 an Application of Dynamic OLS

The paper estimates the long-run elasticities of import demand in Jordan over the period 1980-2004. The Engle-Granger test of co-integration, fails to find favor of a long-run relationship among variables associated with an import demand. Furthermore, the recently prescribed Stock-Watson Dynamic OLS (1993) procedure, is employed to derive long-run relative price and income elasticities. Results reveal that both relative price and income elasticity was -0.55 and 0.84 respectively which affect import demand significantly. Interestingly, the findings have implications explaining Jordanian import demand, in the long-run

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Year of publication:	2008
Authors:	Hussain, Majeed A.
Publisher:	[S.l.] : SSRN
Subject:	Importnachfrage \| Import demand \| Außenhandelselastizität \| Trade elasticity \| Schätztheorie \| Estimation theory \| Schätzung \| Estimation \| Kleinste-Quadrate-Methode \| Least squares method \| Jordanien \| Jordan \| Kointegration \| Cointegration \| Preiselastizität \| Price elasticity