TY - JOUR
T1 - An empirical analysis of Fiji's import demand function
AU - Narayan, Seema
AU - Narayan, Paresh Kumar
N1 - Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2005
Y1 - 2005
N2 - Purpose - This paper aims to estimate a disaggregated import demand model for Fiji using relative prices, total consumption, investment expenditure and export expenditure variables for the period 1970 to 2000. Design/methodology/ approach - The recently developed bounds testing approach to cointegration to test for a long run relationship is used, while the autoregressive distributed lag model is used to estimate short run and long run elasticities. These methodologies are shown to perform well in small sample sizes, particularly given that the bounds F-test critical values for small sample sizes generated by Narayan in 2004 and 2005 are used. Findings - Amongst the key results it is found: a long run cointegration relationship among the variables when import demand is the dependent variable; and import demand to be inelastic and statistically significant at the 1 per cent level with respect to all the explanatory variables in both the long-run and the short-run. Originality/value - The disaggregated import demand model estimated here provides a complete picture of the determinants of Fiji's imports. This model can be used by Fijian policy makers to draw pertinent policies and forecast import demand for Fiji.
AB - Purpose - This paper aims to estimate a disaggregated import demand model for Fiji using relative prices, total consumption, investment expenditure and export expenditure variables for the period 1970 to 2000. Design/methodology/ approach - The recently developed bounds testing approach to cointegration to test for a long run relationship is used, while the autoregressive distributed lag model is used to estimate short run and long run elasticities. These methodologies are shown to perform well in small sample sizes, particularly given that the bounds F-test critical values for small sample sizes generated by Narayan in 2004 and 2005 are used. Findings - Amongst the key results it is found: a long run cointegration relationship among the variables when import demand is the dependent variable; and import demand to be inelastic and statistically significant at the 1 per cent level with respect to all the explanatory variables in both the long-run and the short-run. Originality/value - The disaggregated import demand model estimated here provides a complete picture of the determinants of Fiji's imports. This model can be used by Fijian policy makers to draw pertinent policies and forecast import demand for Fiji.
KW - Fiji
KW - Imports
KW - Supply and demand
UR - http://www.scopus.com/inward/record.url?scp=21544472872&partnerID=8YFLogxK
U2 - 10.1108/01443580510600931
DO - 10.1108/01443580510600931
M3 - Article
AN - SCOPUS:21544472872
VL - 32
SP - 158
EP - 168
JO - Journal of Economic Studies
JF - Journal of Economic Studies
SN - 0144-3585
IS - 2
ER -