Title: Trade liberalisation and export demand function: the case of South Asia.
Abstract: A large number of studies have estimated export price and income elasticities for many different countries utilising various econometrics techniques. This paper seeks to add to this literature by estimating export demand elasticities of selected South Asian countries, India, Bangladesh, Pakistan, Sri Lanka, and Nepal by using cointegration and error correction methods. The study attempts to find if the sample countries share the same features in their export demand function after their trade reforms. The income elasticity varies considerably among the sample countries ranging from 0.17 to 4.23 in the long run and from 0.79 to 3.61 in the short run. Price elasticity estimates for all sample countries are inelastic, varying from 0.17 to 0.5 in the long run and from 0.13 to 0.78 in the short run.
Publication Year: 2009
Publication Date: 2009-01-01
Language: en
Type: article
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