The structure introduced by Armington (1969) has been used to analyze trade policy in partial and general equilibrium models. The Armington elasticities, the degree of substitution between domestic and import goods are known to be important, but are seldom estimated empirically. Therefore, we...

This paper shows an alternative specification of the demand functions of both total imports and the imports of capital goods for Brazil. The set up is based on the conjecture that a variable expressing the availability of foreign exchange should be included in these import functions. Our...