|
|
|
|
Title: |
Sensitivities of Import Demand and Export
Supply in an Open Developing Economy: The Evidence from Taiwan,
1961-1994 |
| Author: |
Wang, Eric C. |
| Author
Affiliation: |
National Chung
Cheng U |
| Source: |
International Economic Journal, Spring 1998, v. 12, no. 1, pp. 121-139 |
|
Publication Date: |
Spring 1998 |
|
Abstract: |
This study examines the time variations in
the elasticities of derived demand for imports and supply of exports
regarding Taiwan's aggregate production. It is to identify the long run
relationship between production behavior and development process. A
translog cost function model is set up to estimate the elasticity series
in 1961-94. A regression model incorporating spline time setting with
economic variables is built for testing the variations. Empirical
results indicate that the elasticity of import demand varies with
foreign income and the elasticity of export supply varies with domestic
production capacity. Major exogenous events are shown to have
significant impacts on production decision. |
|
