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AGGREGATE IMPORT DEMAND BAHAVIOR FOR INDONESIA: EVIDENCE FROM THE BOUNDS TESTING APPROACH

International Journal of Economics, Management and Accounting

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Title AGGREGATE IMPORT DEMAND BAHAVIOR FOR INDONESIA: EVIDENCE FROM THE BOUNDS TESTING APPROACH
 
Creator Tang, Tuck Cheong; School of Business and Information Technology, Monash University Malaysia, 2 Jalan Kolej, Bandar Sunway, 46150 Petaling Jaya, Selangor Darul Ehsan, Malaysia (e-mail: tang.tuck.cheong @busit.monash.edu.my)
 
Description This paper empirically re-estimates the long-run relationship between Indonesian aggregate import demand and its determinants; namely, real income and relative import prices. In contrast to previous studies (Reinhart, 1995; and Senhadji, 1998), the result of the bounds test (Pesaran et al., 2001) reveals that import volume, real income and relative import prices are cointegrated. This is an important finding from the viewpoint of the Indonesian economic policy. The estimated long-run elasticity of real income and relative price are 0.98 and -0.4 respectively.JEL classification: C22, F14Key words: Aggregate import demand, Bounds testing approach, Indonesia
 
Publisher Kulliyyah of Economics and Management Sciences
 
Contributor —
 
Date 2013-02-27
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/83
 
Source International Journal of Economics, Management and Accounting; Vol 10, No 2 (2002)
 
Language eng
 
Relation http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/83/66