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)...

Applying the recently developed unit root tests with unknown level shift (Lanne, Lutkepohl and Saikkonen, 2002; Saikkonen and Lutkepohl, 2002) and the cointegration test with structural break (Gregory and Hansen, 1996), this study reinvestigates the cointegration relationship between imports and...