MODELLING IMPORT DEMAND SYSTEMS WITH NONSTATIONARY DATA: AN APPLICATION TO THE FRENCH IMPORTS OF VIRGIN OLIVE OIL
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
This paper aims to provide a flexible methodological framework to estimate import demand
models, which explicitly considers the stochastic properties of data and the endogenous/exogenous
nature of some variables. The French imports of virgin olive oil have been used as a case study with
Spain, Italy and the Rest of the World as main suppliers. The methodological framework starts by the
specification a reduced-form VAR. Appropriated exogeneity tests show the exogeneity of Total Real
Imports, indicating the appropriateness of estimating a conditional model. Two cointegration
relationships have been found. Several restrictions have been tested in order to identify them as AIDS
equations. From structural coefficients of the restricted cointegrated vectors expenditure, own- and
cross-prices elasticities are computed. Results show the leadership of Spanish exports to the French
market. Italian exports compete in the French market with the Spanish exports, being highly
dependent on Spanish domestic production conditions.