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On the Behavior of Import Demand of Korea
Author(s) -
Mah Jai S.
Publication year - 1992
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/j.1467-8381.1992.tb00085.x
Subject(s) - cusum , economics , econometrics , chow test , income elasticity of demand , demand curve , stability (learning theory) , estimation , price elasticity of demand , ordinary least squares , structural break , microeconomics , operations management , computer science , management , machine learning
In this paper, I provide estimates of the Import demand function for Korea for the period of 1971 – 1988. Second, considering the possibility of structural change in our data period, we test the stability of the coefficients. Cusum of squares test result shows the constancy of the parameters broken between pre‐1980 and post‐1981 data. The estimation result based on data only after 1981 shows that the income elasticity becomes less responsive over time and the relative prices do not exercise significant influence on Korean imports.