IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/124028.html
   My bibliography  Save this paper

Export, Import Demand in Mongolia: Income and Price Elasticities

Author

Listed:
  • Batjargal, Dulamzaya

Abstract

This empirical research estimates the long-term price and income elasticities of Mongolia’s foreign trade using ARDL model and time series of foreign trade, GDP, prices, export and import prices from 2002 to 2018. The research findings confirm a long-term relationship between export and import demand and relative prices and income. Although the estimated price elasticities are relatively weak, with the import price elasticity at -0.65 and export price elasticity at 0.5, the Marshal-Lerner condition holds in the long run. This implies that the depreciation (appreciation) of Mongolian togrog improves (worsens) the trade balance. Moreover, the income elasticity of imports (1.6) is significantly higher than that of exports (0.46), indicating that an increase in domestic demand leads to a deterioration of the trade balance.

Suggested Citation

  • Batjargal, Dulamzaya, 2018. "Export, Import Demand in Mongolia: Income and Price Elasticities," MPRA Paper 124028, University Library of Munich, Germany, revised 2018.
    • Handle: RePEc:pra:mprapa:124028
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/124028/1/MPRA_paper_124028.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gan-Ochir Doojav, 2018. "The Effect of Real Exchange Rate on Trade Balance in a Resource-Rich Economy: The Case of Mongolia," Foreign Trade Review, , vol. 53(4), pages 211-224, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lingaraj Mallick & Smruti Ranjan Behera & Mita Bhattacharya, 2024. "Impact of Exchange Rate on Trade Balance of India: Evidence from Threshold Cointegration with Asymmetric Error Correction Approach," Foreign Trade Review, , vol. 59(2), pages 279-308, May.
    2. Parray Waseem A. & Wani Suadat H. & Yasmin Effat, 2022. "Determinants of the Trade Balance in India. Evidence from a Post-Liberalisation Period," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(4), pages 16-37, December.
    3. Simplice A. Asongu & Joseph Nnanna, 2020. "REER Imbalances and Macroeconomic Adjustments: Evidence from the CEMAC Zone," Foreign Trade Review, , vol. 55(3), pages 372-381, August.
    4. Batmunkh, Munkh-Ulzii & Choijil, Enkhbayar & Vieito, João Paulo & Espinosa-Méndez, Christian & Wong, Wing-Keung, 2020. "Does herding behavior exist in the Mongolian stock market?," Pacific-Basin Finance Journal, Elsevier, vol. 62(C).

    More about this item

    Keywords

    Export demand; import demand; trade elasticity; ARDL model;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:124028. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.