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Title: |
Cointegration Approach to Estimating Bilateral Trade Elasticities
between U.S. and Her Trading Partners |
| Author: |
Bahmani-Oskooee,
Mohsen; Brooks, Taggert J. |
| Author
Affiliation: |
U WI,
Milwaukee; U WI, La Crosse |
| Source: |
International Economic Journal, Winter 1999, v. 13, no. 4, pp. 119-128 |
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Publication Date: |
Winter 1999 |
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Abstract: |
Almost all previous authors who estimated
the trade elasticities relied upon aggregate trade data. To avoid the
aggregation bias, this paper provides estimates of trade elasticities
using bilateral data between the United States and her six largest
trading partners. Application of cointegration analysis reveals that in
many cases, bilateral trade elasticities are large enough to justify
real depreciation of the dollar as a mean of improving U.S. trade
balance. |
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