THE CHALLENGING ESTIMATION OF TRADE ELASTICITIES:TACKLING THE INCONCLUSIVE EUROZONE EVIDENCE
Sascha Keil ()
Additional contact information
Sascha Keil: Technische Universitaet Chemnitz, Fakultaet für Wirtschaftswissenschaften, Professur für Wirtschaftspolitik, Sascha Keil, 09107 Chemnitz (Germany)
No 42, Chemnitz Economic Papers from Department of Economics, Chemnitz University of Technology
Abstract: This paper sheds light on serious methodological difficulties of employing the empiric export equation in order to derive long-run trade elasticities. The unreliable estimated price coefficient (Kaldor Paradox) and the potential presence of cointegrationare identified as the most relevant points. It can be shown that difficulties are in part due to methodological issues. New empirical evidence, encompassing eleven Euro area countries and the timespan 1995–2019, has been obtained from different cointegration techniques. In seven out of eleven cases a robust long-run relationship can be detected and price elasticity was consistently found being significant and negative.
Keywords: International trade; Competitiveness; Kaldor Paradox; Export equation; ARDL (search for similar items in EconPapers)
JEL-codes: F14 C13 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2021-05, Revised 2021-05
References: Add references at CitEc
Citations: Track citations by RSS feed
Published in Chemnitz Economic Papers, May 2021, pages 1-32
Downloads: (external link)
https://www.tu-chemnitz.de/wirtschaft/vwl1/RePEc/d ... aper/CEP042_KEIL.pdf First version, 2021 (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:tch:wpaper:cep042
Access Statistics for this paper
More papers in Chemnitz Economic Papers from Department of Economics, Chemnitz University of Technology Contact information at EDIRC.
Bibliographic data for series maintained by Christian Kulitza ( this e-mail address is bad, please contact ).
