An empirical analysis on the stability of Japan’s aggregate import demand function

Hamori, Shigeyuki; Matsubayashi, Yoichi

doi:10.1016/s0922-1425(00)00063-3

Cited by 20 publications

(14 citation statements)

References 30 publications

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“…'national cash flow' 1 rather than GDP or GNP (in real terms) and to include a time trend to define the longrun behaviour of imports. As consistent with Hamori and Matsubayashi (2001), the study (Tang, 2003a) has concluded that there is no stable (no cointegration) import demand function in Japan during the period analysed and stimulation of domestic business conditions in Japan will not necessarily link to the quantity of imports. Tang (2003c), however, has found a cointegrating relation among the Japanese aggregate imports, the components of real income (final consumption expenditure, domestic investment and exports) and relative price of imports during the period 1973-1997 (yearly data) via the bounds test (Pesaran et al, 2001).…”

Section: Introductionsupporting

confidence: 54%

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Does financial variable(s) explain the Japanese aggregate import demand? A cointegration analysis

Tang¹

2004

Applied Economics Letters

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This study is an extension of the study by Tang (Japan and the World Economy, 15, 419-36, 2003b), which has documented no long-run equilibrium relationship among the Japanese aggregate imports, real income and relative price of imports. This finding, however, is probably due to the bias of variable(s) omission. To fill this gap, financial variable(s) has been empirically incorporated into the Japan's import demand analysis. Using a cointegration approach, this study has provided empirical support for the inclusion of financial variable(s) into the Japanese aggregate import demand function. This is an important finding from the viewpoint of policymakers upon the implications of momentary policies on the Japanese trade balance.

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Section: Introductionsupporting

confidence: 54%

“…Among the selected studies are Mah (1994), Bahmani-Oskooee and Niroomand (1998), Masih and Masih (2000), Hamori and Matsubayashi (2001), Tang (2003aTang ( , 2003b. A brief review of these studies can be found in Tang (2003aTang ( , 2003b.…”

Section: Introductionmentioning

confidence: 99%

Does financial variable(s) explain the Japanese aggregate import demand? A cointegration analysis

Tang¹

2004

Applied Economics Letters

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“…Although equation built above could explain some portion of import demand, undertaken examination for most of countries, Faini et al (1988) found import demand function unstable. Import demand function was predicted by Shabbir and Mahmood (1991) for Pakistan, Carone (1996) for USA, Gregory and Hansen (1996) and Hamori and Matsubayashi (2001) for Japan, Dutta and Nasuriddin (1999) for Bangladesh, Tang and Nair (2002) for Malaysia, Tang (2002) for Indonesia, Chang et al (2005) for South Korea. They analyzed import demand by using conventional variables such as income and relative prices.…”

Section: Introductionmentioning

confidence: 99%

Long Term Impact of Financial System on Import Demand for Turkey

Adıgüzel¹,

Bayat²,

Kayhan³

2012

dogus

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In this study, we aim to analyze whether a shock in a component of the financial system affect import demand on the long run. In this regard, we include components of financial system into the import demand function and employ long run SVAR method. We analyze the eight period from the beginning of "Transition Program for Strengthening the Turkish Economy".We conclude that import demand responses affect positively a national cash flow shock. Relative prices shock affects import demand positively, as expected. There is a number of variables belonging to a financial system which induces import demand. According to results, the financial system influences the import demand and policymakers have to take into account the interaction between import demand and financial system in the policy-making process.ÖZET: Çalışmada finansal sistemin uzun dönemde ithalat talebi üzerindeki etkisini görmek amacıyla, finansal sistem bileşenleri ithalat talebi fonksiyonu içerisine yerleştirilmiştir. Bununla birlikte eleştiriler doğrultusunda ithalat talep fonksiyonu içerisinde gayri safi yurt içi hasıla yerine ulusal nakit akışı değişkeni kullanılmıştır. Çalışmada finansal sisteme ait bir değişkenin uzun dönemde ithalat talebi üzerindeki etkilerini görmek amacıyla uzun dönem yapısal VAR metodolojisi kullanılmıştır. Kullanılan veriler "Güçlü Ekonomiye Geçiş Programı"nın uygulanmaya başladığı tarihten itibaren günümüze sekiz yıllık dönemi kapsamaktadır.Çalışma sonucunda ulusal nakit akışının ithalat talebi üzerinde pozitif bir etkisinin bulunduğu, göreceli fiyatların ise ithalat talebini beklendiği gibi uzun dönemde pozitif etkilediği görülmüştür. Finansal sisteme ait değişkenlerden bazılarının ise ithalat talebi üzerinde anlamlı etkilerinin olduğu sonucuna ulaşılmıştır. Sonuçlar politika yapıcılarının politika kararlarında bu etkileşimi dikkate almaları gerektiğini göstermektedir.

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“…Specifically, it eliminates the problem of multicollinearity which occurs when domestic and import prices are correlated. As such, this model is prevalent in many studies (Chang, Ho and Huang, 2005;Hamori and Matsubayashi, 2001;Anderton, 1999;Ioannidis and Schreyer, 1997). …”

Section: Model Specificationmentioning

confidence: 99%

Resisting Foreign Competition - A Case Study of France and Germany

Thanagopal

Mouël

2014

CES

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This article incorporates both the new trade and the endogenous growth theories to study the determinants of import volumes of France and Germany so as to explain their individual industrial competitiveness strategies -price or quality competition. This article is different because it studies competitiveness of a country's products by considering its resistance to foreign competition rather than considering exports of these countries. Using disaggregated bilateral To eliminate the price endogeneity problem, we implement a Two Stage Least Squares (2SLS) estimation technique using the cost of production (which

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An empirical analysis on the stability of Japan’s aggregate import demand function

Cited by 20 publications

References 30 publications

Does financial variable(s) explain the Japanese aggregate import demand? A cointegration analysis

Does financial variable(s) explain the Japanese aggregate import demand? A cointegration analysis

Long Term Impact of Financial System on Import Demand for Turkey

Resisting Foreign Competition - A Case Study of France and Germany

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