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The Functional Form of the Aggregate Import Demand Equation: Evidence from Developing Countries

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  • KHWAlA SARMAD

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

The specification of the appropriate functional form of the aggregate import demand equation is an important methodological problem, which affects the estimates of demand elasticities and the conclusions about the impact of policy changes. In the absence of any guidance from economic theory we determine the appropriate form empirically using a generalized functional form based on the Box.cox method and find, that for a large number of developing countries the log-linear form is the preferred choice for the aggregate import demand equation.

Suggested Citation

  • KHWAlA SARMAD, 1988. "The Functional Form of the Aggregate Import Demand Equation: Evidence from Developing Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(3), pages 309-315.
    • Handle: RePEc:pid:journl:v:27:y:1988:i:3:p:309-315
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    File URL: http://www.pide.org.pk/pdf/PDR/1988/Volume3/309-315.pdf
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    Cited by:

    1. Thomas Fullerton & W. Sawyer & Richard Sprinkle, 1999. "Latin American trade elasticities," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 23(2), pages 143-156, June.

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