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Import demand under a foreign exchange constraint

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  • Angelos A. Antzoulatos
  • Simone Peart

Abstract

This paper develops a forward-looking model for import demand under a foreign exchange constraint, in which import growth is an increasing function of contemporaneous and expected future export growth. ; Unlike existing models which stress the role of foreign exchange reserves and contemporaneous export earnings for countries that have limited access to foreign borrowing, this one stresses the importance of the expected time path of future export earnings. The implications of the model are tested and confirmed with data from three East Asian developing countries for which relevant time series are available at quarterly intervals.

Suggested Citation

  • Angelos A. Antzoulatos & Simone Peart, 1998. "Import demand under a foreign exchange constraint," Research Paper 9810, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednrp:9810
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    References listed on IDEAS

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    Cited by:

    1. Worrell, DeLisle & Lowe, Shane & Naitram, Simon, 2012. "Growth Forecasts for Foreign Exchange Constrained Economies," MPRA Paper 52169, University Library of Munich, Germany.
    2. SENE, Mr. SEYDINA OUSMANE & SAGHAIAN, Dr. SAYED H., 2014. "Liberalized World Trade and Food Import Under Foreign Exchange Constraints in the CFA's Franc Zone of Sub-Saharan Africa," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162485, Southern Agricultural Economics Association.

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