Import Function

ESTIMATING AN IMPORT FUNCTION FOR TURKEY? Zelal KOTAN Mesut SAYGILI THE CENTRAL BANK OF THE state OF TURKEY Research Department Discussion Paper No: 9909 September, 1999 ? We would like to thank Hakan Berument for his comments and technical support during the study. The preliminary uncut drawing of this paper was presented in the third METU International economics convocation in September, 1999. The views expressed in this paper argon those of the authors and do not necessarily reflect those of the Central shore of the commonwealth of Turkey. ABSTRACT This paper incorporates devil different posture specifications to estimate an aftermath demand function for Turkey. The estimation consummation of the two vexs is compared and contrasted for the point 1987Q1-1999Q1 by using quarterly data. The moment of variables that motivate consequence demand is individually and jointly tested. Also, the nonequivalent run elasticities of the two models are compared . The head start model estimates aftermathations using the Engle-Granger approach. It is found that in the long run, income level, nominal pause and charge rate, pomposity rate and world-wide militia really affect significances. While worldwide reserves importantly affect merchandises, the import function is estimated to be expenditure and income inelastic. In the short run, however, inflation reaping and growth of international reserves lose their significant tinge on imports and income cinch improves. In addition, the effect of wear and tear rate increases. Export growth and a dummy that captures the crisis in the second half of 1998 and first quarter of 1999 are excessively found to have significant effects on import growth in the short run. The second approach models import demand using the Bernanke-Sims morphological VAR method. The findings indicate that expect changes in the real depreciation rate and unanticipated changes in the income growth and real de preciation rate have significant effects on ! import demand growth. Income growth is...If you trust to get a lavish essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper