Batjargal, Dulamzaya (2018): Export, Import Demand in Mongolia: Income and Price Elasticities. Published in: Money, Finance, Wealth , Vol. 10, (2018): pp. 95-109.
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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.
Item Type: | MPRA Paper |
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Original Title: | Export, Import Demand in Mongolia: Income and Price Elasticities |
Language: | English |
Keywords: | Export demand, import demand, trade elasticity, ARDL model |
Subjects: | F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade |
Item ID: | 124028 |
Depositing User: | Ms. Dulamzaya Batjargal |
Date Deposited: | 28 Mar 2025 09:33 |
Last Modified: | 28 Mar 2025 09:33 |
References: | 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, 53(4), 1–14. Ghodsi, Mahdi, Grübler, Julia, & Stehrer, Robert. (2016). "Import Demand Elasticities Revisited." The Vienna Institute for International Economic Studies, Working Paper No. 132. Khan, Saleem, Khan, Sajjad Ahmad, & Zaman, Khair UZ. (2013). "Pakistan’s Export Demand Income and Price Elasticity Estimates: Reconsidering the Evidence." Research Journal of Recent Sciences, pp. 59-62. Nwogwugwu, Uche C., Maduka, Anne C., & Madichie, Chekwube V. (2017). "Price and Income Elasticities of Import Demand in Nigeria: Evidence from the Bound Testing Procedure." International Journal of Development and Economic Sustainability, pp. 25-37. Constant, Serge, Bi Zambe, N’guessan, & Yue, Yaoxing. (2010). "An Econometric Estimation of Import Demand Function for Côte d'Ivoire." International Journal of Business and Management, pp. 77-84. Tokarick, Stephen. (2010). "A Method for Calculating Export Supply and Import Demand Elasticities." IMF Working Paper Series, WP/10/180. Vojnovic, Maja Kadievska, & Unevska, Danica. (2007). Price and Income Elasticities of Export and Import and Economic Growth in the Case of Republic of Macedonia. National Bank of the Republic of Macedonia. Мөнхзул, Б. (2014). "Төгрөгийн гадаад валюттай харьцах ханшийн импортод үзүүлэх нөлөөг тооцох нь." Bank of Mongolia Судалгааны Товхимол, 9(1). |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/124028 |