Premium
Explaining Australia's Imports: 1974–1989*
Author(s) -
WILKINSON JENNY
Publication year - 1992
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1992.tb01760.x
Subject(s) - economics , cointegration , relative price , overtime , international economics , agricultural economics , monetary economics , international trade , econometrics , labour economics
A model is estimated to explain Australia's demand for imports over the period from September 1974 to September 1989. Using cointegration techniques, it is found that growth in imports is well explained by movements in domestic activity, relative prices of imports and exports, and overtime. The models explain almost all of the rapid growth in imports over the period from September 1986 to September 1989. Over this period, the relative price of domestic goods to imports grew more strongly than domestic activity, and the contribution of relative prices to growth in imports is found to outweigh that of activity.