This paper uses a cointegration approach to estimate the demand functions for imports and exports in Mexico. The especification of each function is derived from the model of imperfect substitute goods and are estimated using monthly data over the period 1991-2005. It is found that all variables...

In this paper we investigate the effects of volatility of the fundamental determinants of trade on trade flows in Mexico during the period 1991-2008. Our import and export functions are based on the well known imperfect substitute goods model of trade. We focus on the effects on imports and...

In this paper we investigate the effects of volatility of the fundamental determinants of trade on trade flows in Mexico during the period 1991-2008. Our import and export functions are based on the well known imperfect substitute goods model of trade. We focus on the effects on imports and...