relationships are found and identified as export supply and demand. Overidentifying restrictions derived from economic theory are … 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 …

low price elasticities. Furthermore, estimation results strongly depend on the observation period. Minor variations in the … estimation period typically lead to insignificant price terms often displaying the wrong sign. Based on an extensive econometric …. We find that imports, exports, investment, and a relative import price form highly stable cointegration relationships …