Estimating import and export demand elasticities for Mauritius and South Africa

Seema Narayan, Paresh Kumar Narayan

Research output: Contribution to journalArticleResearchpeer-review

11 Citations (Scopus)

Abstract

In this paper, we re-estimate the import and the export demand functions for Mauritius and South Africa using time series data. We use the bounds tests for cointegration and find evidence of a long-run relationship between import demand, income and prices for both countries. Our long run elasticities reveal that domestic income and relative prices have significant effects on the import demand for both countries, with income being the most important determinant. Furthermore, we find that while South Africa's export demand is not responsive to relative prices or income; for Mauritius income is statistically significant.

Original languageEnglish
Pages (from-to)241-252
Number of pages12
JournalAustralian Economic Papers
Volume49
Issue number3
DOIs
Publication statusPublished - Sep 2010
Externally publishedYes

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