An Aggregate Import Demand Function for India: A Cointegration Analysis Dilip Dutta; Nasiruddin Ahmed

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Authors
Dilip Dutta ; Nasiruddin Ahmed
Subjects
error correction modelling; aggregate imports; india
Summary
This paper investigates the behaviour of Indian aggregate imports during the period 1971-1995. In our empirical analysis of the aggregate import demand function for India, cointegration and error correction modelling approaches have been used. In the aggregate import demand function for India, import volume is found to be cointegrated with relative import price and real GDP. Our econometric estimates of the import-demand function for India suggest that import-demand is largely explained by real GDP, and is generally less sensitive to import price changes. Import liberalisation is found to have had little impact on import demand.
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http://trove.nla.gov.au/work/39289
Work ID
39289

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