Empirical Evidence on Korea’s Import Demand Behavior Revisited

This paper attempts to re-examine Korea’s import demand behavior with an enhanced econometric technique and an up-to-date dataset. To achieve the goal, an autogressive distributed lag (ARDL) approach is adopted. Our results show the existence of the long-run relationship between Korea’s imports and its major determinants such as income and price. It is also found that income plays an important role in influencing Korea’s imports in both the short- and long-run. On the other hand, price is found to have a significant impact on Korea’s imports only in the short-run.