This paper provides new evidence on export price elasticities by analyzing the cases of China, France, Germany, Italy, Japan, UK and the USA over the period 1990-2012. Estimates have been made using panel data techniq...This paper provides new evidence on export price elasticities by analyzing the cases of China, France, Germany, Italy, Japan, UK and the USA over the period 1990-2012. Estimates have been made using panel data techniques for non-stationary data. After demonstrating that long-run relationships are stable to any structural break, it is found that exports are significantly determined by foreign demand, with long-run income elasticity significantly higher than unity for China, Japan, Germany, the UK and the USA. Conversely, exports are price inelastic for most of the countries in the sample, in both the long run and the short run. The exception is France, whose export price elasticity is lower （higher） than unity in the short run （long run）.展开更多
The appearance of new product varieties and improvements in the quality of goods have both played key roles in the rapid growth of China＇s exports. However, these two important elements have not been formally integ...The appearance of new product varieties and improvements in the quality of goods have both played key roles in the rapid growth of China＇s exports. However, these two important elements have not been formally integrated into the demand equations for China＇s exports. As we demonstrate in this paper, income elasticity will be underestimated if new varieties of goods and quality improvements are omitted in price index and quantity index calculations, which are necessary for estimating the export demand function. Moreover, the faster new product varieties enter export markets, the greater the underestimation will be. In this paper, we develop an export demand equation that takes into account newproduct varieties and improvements in quality, and then calculate the demand function for China＇s exports using the data from 1992 to 2006. According to our estimation, the short-term income elasticity of demand for China ＂s exports is approximately 2.34, and the short-term price elasticity is approximately-0. 65. Our estimation predicts an increase in China＇s export value in the case of an RMB appreciation or export rebate rates reduction in the short term, due to the low price elasticity of China＇s exports, whose absolute value is less than 1. Our findings are novel and could have significant policy implications.展开更多
文摘This paper provides new evidence on export price elasticities by analyzing the cases of China, France, Germany, Italy, Japan, UK and the USA over the period 1990-2012. Estimates have been made using panel data techniques for non-stationary data. After demonstrating that long-run relationships are stable to any structural break, it is found that exports are significantly determined by foreign demand, with long-run income elasticity significantly higher than unity for China, Japan, Germany, the UK and the USA. Conversely, exports are price inelastic for most of the countries in the sample, in both the long run and the short run. The exception is France, whose export price elasticity is lower （higher） than unity in the short run （long run）.
基金financial support from the International Studies Division of the Chinese Acadcmy of Social Sciences
文摘The appearance of new product varieties and improvements in the quality of goods have both played key roles in the rapid growth of China＇s exports. However, these two important elements have not been formally integrated into the demand equations for China＇s exports. As we demonstrate in this paper, income elasticity will be underestimated if new varieties of goods and quality improvements are omitted in price index and quantity index calculations, which are necessary for estimating the export demand function. Moreover, the faster new product varieties enter export markets, the greater the underestimation will be. In this paper, we develop an export demand equation that takes into account newproduct varieties and improvements in quality, and then calculate the demand function for China＇s exports using the data from 1992 to 2006. According to our estimation, the short-term income elasticity of demand for China ＂s exports is approximately 2.34, and the short-term price elasticity is approximately-0. 65. Our estimation predicts an increase in China＇s export value in the case of an RMB appreciation or export rebate rates reduction in the short term, due to the low price elasticity of China＇s exports, whose absolute value is less than 1. Our findings are novel and could have significant policy implications.
