Determinants of Demand for Fiji's Exports: An Empirical Investigation

Developing Economies, Vol. 42, No. 1, pp. 95-112, 2004

Posted: 11 Jun 2012

See all articles by Seema Narayan

Seema Narayan

affiliation not provided to SSRN

Paresh Kumar Narayan

Deakin University - School of Accounting, Economics and Finance

Date Written: 2004

Abstract

Fiji is no exception to the rule that exports are an important source of growth and development. In this light, it is important to know the determinants of exports. However, there is no empirical study on Fiji's export demand. This paper uses the modern econometric techniques-in particular, the autoregressive distributed lag approach to cointegration-to investigate whether the standard export demand variables, viz., trading partner income, export price, and competitor price, have a long-run cointegration relationship with Fiji's real exports for the period 1970 to 1999. In addition, the long-run results are also estimated by using the dynamic ordinary least squares and the fully modified ordinary least squares. The empirical results indicate the existence of a cointegration relationship among the variables. The long-run foreign income, own-price, and cross-price elasticities are found to be 0.7 to 0.8, -1.3 to -1.5, and 2.1 to 2.2, respectively.

Suggested Citation

Narayan, Seema and Narayan, Paresh Kumar, Determinants of Demand for Fiji's Exports: An Empirical Investigation (2004). Developing Economies, Vol. 42, No. 1, pp. 95-112, 2004 , Available at SSRN: https://ssrn.com/abstract=2081437

Seema Narayan

affiliation not provided to SSRN ( email )

Paresh Kumar Narayan (Contact Author)

Deakin University - School of Accounting, Economics and Finance ( email )

221 Burwood Highway
Burwood, Victoria 3215
Australia

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