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Studies investigatingdeterminants of import demand for Uganda present aggregate findings yet thereis a need to disaggregate the findings for specific sectors. This creates aresearch gap on disaggregated findings of import demand. This research attemptsto fill this research gap by establishing determinants of import demand usingdisaggregated sector level data for consumer, intermediate and capital goods.The study estimates the long-run and short-run import demand elasticities forconsumer, intermediate and capital goods over the period 1994 to 2012. The resultsshow that there exists a cointegrating relationship between the disaggregatedimport demand and the following set of variables; relative import price, GDPper capita, real effective exchange rate, foreign exchange rate reserves andtrade openness. The long run elasticity appears more responsive to importdemand compared to the short-run elasticity. Importantly the effect of a changein trade openness on the volume of imports is positive, suggesting tradeliberalization increases import demand.


Trade Liberalization, Import Demand, Consumer Goods, Intermediate Goods, Capital Goods, Uganda

Cite this paper

Samuel, G. 2015 Trade Liberalization and Disaggregated Import Demand in Uganda. Modern Economy, 6, 316-337. doi: 10.4236-me.2015.63030.

Autor: Gaalya Micah Samuel



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