effect of globalization is often neglected leading to implausibly high income elasticities. This paper models export demand … vector error correction model is the appropriate econometric framework. Using the Johansen procedure, two cointegration … relationships are found and identified as export supply and demand. Overidentifying restrictions derived from economic theory are …

. It is substantiated that the co-integration test is a promising instrument for testing the hypothesis about the … expediency of trade integration of economically asymmetric partners. The presence of co-integration between bilateral trade … absolute values. Furthermore, confirmed cointegration of bilateral trade flows between countries can be considered as an …