This paper provides estimates of the sensitivity of Canadian import demand to changes in income, prices, and exchange rates. The model specification allows for the consideration of long-run elasticities as well as the dynamics of short-run adjustment of imports to changes in these variables. The...

An important issue in applied international economics is the extent to which trade flows adjust to changes in income, relative prices, and exchange rates. While there have been numerous surveys regarding merchandise trade elasticities in industrial economies such as Japan and the United States,...