Artikel
The influence of the real effective exchange rate and relative prices on South Africa's import demand function: An ARDL approach
This paper analyses the influence of the real effective exchange rate (REER) and relative prices on South Africa's import demand function both in the long run and the short run. The ARDL bounds testing approach is employed to test the long-run relationship hypothesis. The estimation of both the long-run and short-run import demand models is based on the ARDL error correction methodology. All the tests are applied to South Africa's secondary quarterly data covering the period 1980Q1-2014Q4. Real GDP and Foreign reserves were also added to the models as control variables. The Bounds test proved cointegration and the results show that in the long run, South Africa's import demand is negatively related to the REER, while being positively related to Real GDP (used as a proxy for national income) and relative prices. The coefficient of the relative price variable is greater than 1 in absolute terms, thus also confirming the Marshal Lerner condition. In the short run, import demand is found to be negatively related to the REER, while being positively related to Real GDP, relative prices and the stock of foreign reserves. The result gives hope that a policy aimed at depreciating the currency may help bring down the surge in import demand.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 5 ; Year: 2017 ; Issue: 1 ; Pages: 1-16 ; Abingdon: Taylor & Francis
- Klassifikation
-
Wirtschaft
Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
Trade Policy; International Trade Organizations
Foreign Exchange
- Thema
-
import demand
foreign exchange
depreciation
auto regressive distributed lag model (ARDL)
commercial policy
Marshall-Lerner condition
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Matlasedi, Tony Nchokoe
- Ereignis
-
Veröffentlichung
- (wer)
-
Taylor & Francis
- (wo)
-
Abingdon
- (wann)
-
2017
- DOI
-
doi:10.1080/23322039.2017.1419778
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Matlasedi, Tony Nchokoe
- Taylor & Francis
Entstanden
- 2017
Ähnliche Objekte (12)
Estimating Import-Demand Function in ARDL Framework
Development of Import-Based Exports in Turkey: The ARDL Approach
Import Demand Elasticities Revisited
Import Demand Functions Revisited
Low quality-effective demand
Measuring real exchange rate misalignment: an industry-level analysis of Pakistan using ARDL approach
The Determinants of Crude Oil Prices: Evidence from ARDL and Nonlinear ARDL Approaches
The Determinants of Crude Oil Prices: Evidence from ARDL and Nonlinear ARDL Approaches
Can inaction account for the incomplete exchange rate pass-through? Evidence from threshold ARDL model
Asymmetric impact of real exchange rate on inflation in Ethiopia: A non-linear ARDL approach
Import demand function for Turkey
Asymmetric real-exchange-rate effects on capital accumulation: Evidence from non-linear ARDL models for Mexico
Estimating Import-Demand Function in ARDL Framework
Development of Import-Based Exports in Turkey: The ARDL Approach
Import Demand Elasticities Revisited
Import Demand Functions Revisited
Low quality-effective demand
Measuring real exchange rate misalignment: an industry-level analysis of Pakistan using ARDL approach
The Determinants of Crude Oil Prices: Evidence from ARDL and Nonlinear ARDL Approaches
The Determinants of Crude Oil Prices: Evidence from ARDL and Nonlinear ARDL Approaches
Can inaction account for the incomplete exchange rate pass-through? Evidence from threshold ARDL model
Asymmetric impact of real exchange rate on inflation in Ethiopia: A non-linear ARDL approach
Import demand function for Turkey
Asymmetric real-exchange-rate effects on capital accumulation: Evidence from non-linear ARDL models for Mexico
Estimating Import-Demand Function in ARDL Framework
Development of Import-Based Exports in Turkey: The ARDL Approach
Import Demand Elasticities Revisited
Import Demand Functions Revisited
Low quality-effective demand
Measuring real exchange rate misalignment: an industry-level analysis of Pakistan using ARDL approach
The Determinants of Crude Oil Prices: Evidence from ARDL and Nonlinear ARDL Approaches
The Determinants of Crude Oil Prices: Evidence from ARDL and Nonlinear ARDL Approaches
Can inaction account for the incomplete exchange rate pass-through? Evidence from threshold ARDL model
Asymmetric impact of real exchange rate on inflation in Ethiopia: A non-linear ARDL approach
Import demand function for Turkey