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1 – 10 of over 29000Frank W. Agbola and Maylene Y. Damoense
This study seeks to examine empirically import demand for total pulses, chickpeas and lentils in India based on the concept of unit root and cointegration.
Abstract
Purpose
This study seeks to examine empirically import demand for total pulses, chickpeas and lentils in India based on the concept of unit root and cointegration.
Design/methodology/approach
The Stock‐Watson dynamic OLS (DOLS) model – which is robust to small sample and eliminates simultaneity bias – is used to derive the long‐run price, income and urbanisation elasticities of import demand. The data covers the period 1970‐2000.
Findings
Results indicate that real GDP, relative price and urbanisation are the key determinants of import demand for pulses in India. The estimated long‐run elasticities of import demand with respect to income (relative price) are 0.4 (−1.7) for chickpeas, 0.56 (−0.87) for lentils and 0.36 (0.00) for total pulses. The estimated long‐run elasticities of import demand with respect to urbanisation are 9.9 for chickpeas, zero for lentils and 7.2 for total pulses. The policy implications of the results are discussed.
Originality/value
Provides evidence that the response of import demand for pulses to key determinants differ substantially from product to product.
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Nomfundo Portia Vacu and Nicholas Odhiambo
The purpose of this paper is to examine the determinants of aggregate and dis-aggregated import demand for Ghana for the period from 1985 to 2015.
Abstract
Purpose
The purpose of this paper is to examine the determinants of aggregate and dis-aggregated import demand for Ghana for the period from 1985 to 2015.
Design/methodology/approach
The study employed the autoregressive distributed lag bounds testing approach.
Findings
The long-run finding show that aggregate import demand (AIMD) is positively determined by exports of goods and services and consumer spending, but negatively determined by foreign exchange reserves. It is found that consumer spending is the key positive determinant of the import demand of consumer goods, while foreign exchange reserves, trade liberalisation policy and relative import price are negative determinants. It is found that import demand of intermediate goods is positively determined by consumer spending, government spending and investment spending. The long-run findings further confirm that import demand of capital goods is negatively determined by relative import price. In the short run, the findings suggest that AIMD is positively affected by exports of goods and services, investment spending and consumer spending, but negatively affected by foreign exchange reserves. Import demand of consumer goods is positively influenced by consumer spending, but negatively determined by relative import price. Finally, import demand for intermediate goods is found to be positively determined by investment spending and government spending, while import demand for capital goods is positively associated with exports of goods and services and trade liberalisation policy in the previous period.
Originality/value
A number of studies have looked at the determinants of import demand, focussing on the aggregated import demand. This study adds the component of dis-aggregated import demand, as it assist in dealing with the issues of bias.
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José Antonio Romero Tellaeche and Rodrigo Aliphat
This study estimated total import demand elasticities concerning income, import prices and domestic prices. A high propensity to import constitutes a significant obstacle to…
Abstract
Purpose
This study estimated total import demand elasticities concerning income, import prices and domestic prices. A high propensity to import constitutes a significant obstacle to economic growth in Mexico since the benefits of increased exports or any other aggregate demand expansion leak to the rest of the world.
Design/methodology/approach
This paper estimated a Vector Error Correction Model of the total import demand elasticities concerning income, import prices and domestic prices. Total imports are a dependent variable, while Gross Domestic Product (GDP) and import and domestic prices are the independent variables.
Findings
The principal finding is that an increase of 1 peso in the Mexican GDP leads to a rise of 0.50 pesos in Mexican imports; the elasticity of import demand for prices is low. Still, the elasticity of import demand for domestic prices is 2.14 times greater than that for import prices. These results have significant economic policy implications, such as promoting the expansion of the domestic market and the national content of exports.
Research limitations/implications
It is tempting to estimate the import demand function for the entire 1993–2019 period since such data is available. But by doing so, the authors would overestimate the propensity to import, given that from 1993 to 2019, the proportion of imports as a percentage of GDP went from 11.37 in 1993 to 29.66 in 2019. Therefore, it makes more sense to estimate the import demand function from 2000 to 2019, a period with a stable proportion of imports to GDP.
Originality/value
A high level of imports in developing countries means that much of their aggregate demand is filtered abroad. Therefore, the low impact of its exports on GDP is related to the Mexican economy’s high imports. The authors calculate this relationship with new data and methods.
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Abiodun S. Bankole, Olanrewaju Olaniyan, M. Adetunji Babatunde and Rifkatu Nghargbu
The purpose of this paper is to estimate Nigeria's audiovisual services import demand using foreign football transmitted through digital satellite television (DSTV) as a case…
Abstract
Purpose
The purpose of this paper is to estimate Nigeria's audiovisual services import demand using foreign football transmitted through digital satellite television (DSTV) as a case study. The major focus is on whether such imports effectively replace local recreation in watching domestic football.
Design/methodology/approach
The authors examined descriptive statistics. The methodology employed is a combination of descriptive analysis and cross‐sectional regression.
Findings
The paper's analytical framework establishes a link between the conventional import demand and demand for football functions, while the estimated empirical counterpart found that the demand for foreign football via cross‐border satellite transmission is a statistically significant function of taste for foreign football, quality, and entertainment. While descriptive statistics indicate respondents’ preference for foreign football, the test of significance rejected the hypothesis that the demand for foreign football broadcast service imports has replaced demand for domestic football as an entertaining sport. In addition, the demand for foreign football broadcast is fairly inelastic, as a greater percentage of the respondents will watch foreign football even if the cost of subscription or cost of paying per view in the viewing centers increase.
Originality/value
The paper describes the first of this type of research to be conducted in Nigeria.
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Andrew Muhammad, Anthony R. Delmond and Frank K. Nti
Chinese beer consumption has undergone major changes within the last decade. The combination of a growing middle class and greater exposure to foreign products has resulted in a…
Abstract
Purpose
Chinese beer consumption has undergone major changes within the last decade. The combination of a growing middle class and greater exposure to foreign products has resulted in a significant increase in beer imports. The authors examined transformations in this market and how beer preferences have changed over time. This study focuses on changes is origin-specific preferences (e.g. German beer and Mexican beer) as reflected by habit formation (i.e. dynamic consumption patterns) and changes in demand sensitivity to expenditure and prices.
Design/methodology/approach
The authors estimated Chinese beer demand – differentiated by source – using a generalized dynamic demand model that accounted for habit formation and trends, as well as the immediate and long-run effects of expenditures and prices on demand. The authors employed a rolling regression procedure that allowed for model estimates to vary with time. Preference changes were inferred from the changing demand estimates, with a particular focus on changes in habit formation, expenditure allocating behaviour, and own-price responsiveness.
Findings
Results suggest that Chinese beer preferences have changed significantly over the last decade, increasing for Mexican beer, Dutch beer and Belgian beer. German beer once dominated the Chinese market. However, all indicators suggest that German beer preferences are declining.
Originality/value
Although China is the world's third largest beer importing country behind the United States and France. Few studies have focused on this market. While dynamic analyses of alcoholic beverage demand are not new, this is the first study to examine the dynamics of imported beer preferences in China and implications for exporting countries.
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Assem Abu Hatab and Yves Surry
A better understanding of the determinants of demand through accurate estimates of the elasticity of import demand can help policymakers and exporters improve their market access…
Abstract
Purpose
A better understanding of the determinants of demand through accurate estimates of the elasticity of import demand can help policymakers and exporters improve their market access and competitiveness. This study analyzed the EU's demand for imported potato from major suppliers between 1994 and 2018, with the aim to evaluate the competitiveness of Egyptian potato.
Design/methodology/approach
This study adopted an import-differentiated framework to investigate demand relationships among the major potato suppliers to the EU's. To evaluate the competitiveness of Egyptian potato on the EU market, expenditure and price demand elasticities for various suppliers were calculated and compared.
Findings
The empirical results indicated that as income allocation of fresh potatoes increases, the investigated EU markets import more potatoes from other suppliers compared to imports from Egypt. The results show that EU importers may switch to potato imports from other suppliers as the import price of Egyptian potatoes increases, which enter the EU markets before domestically produced potatoes are harvested.
Research limitations/implications
Due to data unavailability, the present study relied on yearly data on quantities and prices of EU potato imports. A higher frequency of observations should allow for considering seasonal effects, and thereby providing a more transparent picture of market dynamics and demand behavior of EU countries with respect to potato import from various sources of origin.
Originality/value
The study used a system-wide and source differentiated approach to analyze import demand. In particular, the empirical approach allowed for comparing different demand models (AIDS, Rotterdam, NBR and CBS) to filter out the superior and most suitable model for that data because the suitability and performance of a demand model depends rather on data than on universal criteria.
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Seema Narayan and Paresh Kumar Narayan
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…
Abstract
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.
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Marlisa Ayu Trisia, Hironobu Takeshita, Mayumi Kikuta and Hiroshi Ehara
Sago starch (Metroxylon sagu Rottb.) is one of the starches imported into Japan. Recently, sago starch has been promoted as a healthy type of starch because it is gluten-free and…
Abstract
Sago starch (Metroxylon sagu Rottb.) is one of the starches imported into Japan. Recently, sago starch has been promoted as a healthy type of starch because it is gluten-free and non-allergenic. This study aims to identify the factors affecting sago starch import demand during the period 1978–2017 in Japan by using a double logarithmic linear function. The study revealed that the price of sago starch, GDP, aging population rate and tariff-rate quota policy are significant factors influencing sago starch importation in Japan.
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The purpose of this paper is to provide a better understanding of the driving forces and structural changes of China as a market provider for Korea. This paper gives the answers…
Abstract
Purpose
The purpose of this paper is to provide a better understanding of the driving forces and structural changes of China as a market provider for Korea. This paper gives the answers for the following questions: How do China’s final demands trigger the growth of its imports from Korea? And what’s the impact of China’s final demands on the import in different industries?
Design/methodology/approach
Based on the Multi-Regional Input-Output model and World Input-Output Table database, this paper constructs the non-competitive imports input-output (IO) table of China to Korea. According to this table, we can calculate the induced imports coefficient and comprehensive induced import coefficients of China’s four final demands for imports from Korea in the 56 industries in China.
Findings
Among the four driving forces, the strongest one is changes in inventories and valuables. The impact of final consumption expenditure and fixed capital formation is much lower than that of changes in inventories and valuables, but they have a broader impact for the 56 industries. This paper finds out the China’s import induction of the final demands to Korea peaked in 2005 and 2010 and decreased greatly in 2014, so the position of China as market provider for Korea will no longer rise substantially, contrarily it will be in a steady state.
Originality/value
First, this paper constructs the non-competitive IO table to analyze the market provider issues between two countries and provides practical ways and methods for studies on the issues of imports and market provider. Second, this paper investigates the different roles of four final demands on driving force of China as market provider for Korea and the structural changes of China as a market provider for Korea among 56 industries from 2000 to 2014.
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