Skip to main content

Demand for Greek imports using multivariate cointegration techniques

Buy Article:

$55.00 plus tax (Refund Policy)

Abstract:

Starting from a theoretical model with importable, traded and nontraded goods, we identify a long run relationship among Greek imports, domestic activity and relative prices. The model supports weak exogeneity of relative prices which means that Greek importers take the price of imports as given. The greater than one income elasticity, which persists even when cyclical demand effects are netted out, means that Greece faces an external constraint on growth as verified by the negative effect of the disequilibrium error in the short run output equation. The findings of this paper suggest that the price of domestic tradeables and nontradeables are significant determinants of the long run and short run import demand, while instability in domestic inflation is found to have a strong short run depressing effect on domestic activity.

Document Type: Research Article

DOI: https://doi.org/10.1080/000368498324823

Publication date: 1998-11-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more