Harb, Nasri (2005): Import Demand in Heterogeneous Panel Setting. Published in: Applied Economics , Vol. 37, No. 20 (2005): pp. 24072415.

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Abstract
To study the elasticities of import demand function, we build a heterogeneous panel with data of 40 counties and use panel unit root tests (Im, Pesaran and Shin, 1997) and panel cointegration tests (Pedroni, forthcoming). We test our model with two previously used activity variables: GDP and GDP minus Export for a performance comparison. To estimate our elasticities, we make use of two modified panel version of FMOLS and DOLS developed by Pedroni (1996, 2000, 2001). Our tests prove that GDP outperforms GDP minus Exports as an activity variable in the cointegration context. FMOLS and DOLS give close results when we do individual estimates. When we use betweendimension estimators, we get conflicting results. Hence, we split our sample into developed and developing groups and show that income elasticity in developing countries are not different than unity on average and are higher than in developed countries contradicting previous results in the literature.
Item Type:  MPRA Paper 

Original Title:  Import Demand in Heterogeneous Panel Setting 
Language:  English 
Keywords:  Import Demand elasticities, Time series, Panel cointegration, FMOLS, DOLS 
Subjects:  F  International Economics > F1  Trade > F10  General C  Mathematical and Quantitative Methods > C2  Single Equation Models; Single Variables > C23  Models with Panel Data; Longitudinal Data; Spatial Time Series C  Mathematical and Quantitative Methods > C2  Single Equation Models; Single Variables > C22  TimeSeries Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models 
Item ID:  13622 
Depositing User:  Nasri Harb 
Date Deposited:  26. Feb 2009 04:55 
Last Modified:  30. Apr 2014 20:36 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/13622 