Testing for cointegration in import demand for consumer and non-consumer commodities in the republic of Cameroon

Empirical estimates of the determinants of import demand for consumer and non-consumer commodities in the Republic of Cameroon are derived using cointegration and error-correction modelling. Disaggregation of total merchandise imports into three classes of consumer goods and seven classes of non-con...

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Detalles Bibliográficos
Autor principal: Tambi, N.E.
Formato: Journal Article
Lenguaje:Inglés
Publicado: Informa UK Limited 1997
Materias:
Acceso en línea:https://hdl.handle.net/10568/35279
Descripción
Sumario:Empirical estimates of the determinants of import demand for consumer and non-consumer commodities in the Republic of Cameroon are derived using cointegration and error-correction modelling. Disaggregation of total merchandise imports into three classes of consumer goods and seven classes of non-consumer goods reveals that imports of consumer goods are more sensitive to import price and income changes than is the case with non-consumer goods. Rising import prices have a depressing effect on trade in consumer goods and appear to encourage demand for domestic substitutes of these goods. Over time, income elasticities of import demand become larger than short-run elasticities, suggesting a greater degree of "openness" of the Cameroon economy.