Further evidence on import demand function and income inequality

Artikel

In advanced economies, rising inequality has become a significant economic issue. Our paper examines one dimension of the impact of inequality. This study employs panel estimators that tackle heterogeneity and cross-sectional dependence to estimate the impact of income inequality on import demand. In addition, we use a Bayesian approach to the cointegrated VAR model as well as a model that allows for stochastic trends and cross-sectional dependence. Annual panel data for the period from 1995 to 2016 on OECD countries are used. The empirical results show that inequality has a positive and significant effect on import demand. The estimation also yields some other expected results, viz. that the income and price elasticity of import demand function are positive and negative, respectively.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economies ; ISSN: 2227-7099 ; Volume: 8 ; Year: 2020 ; Issue: 4 ; Pages: 1-12 ; Basel: MDPI

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics and Monetary Economics: General ; Macroeconomic Aspects of International Trade and Finance: General ; Empirical Studies of Trade ; Bayesian Analysis: General ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
• Subject: cross-sectional dependence ; import demand ; income inequality ; panel cointegrated VAR ; system GMM

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Konstantakopoulou, Ioanna
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2020

Further information

• DOI: doi:10.3390/economies8040091
• Handle: http://hdl.handle.net/10419/257140
• Last update: 10.03.2025, 11:41 AM CET