Title

The Adjustment of Canadian Import Demand to Changes in Income, Prices, and Exchange Rates

Document Type

Article

Publication Date

11-1-1993

Department

Political Science, International Development, and International Affairs

Abstract

The paper provides estimates of the sensitivity of Canadian import demand to changes in income, prices, and exchange rates. The model specification allows for the consideration of long-run elasticities as well as the dynamics of short-run adjustment of imports to changes in these variables. The estimated long-run elasticities obtained are similar to those in previous studies. It is also shown that Canadian imports react quickly to changes in either foreign or domestic prices, but that the reaction to changes in exchange rates is much slower.

Publication Title

Canadian Journal of Economics/Revue Canadienne d'Économique

Volume

26

Issue

4

First Page

890

Last Page

900