The purpose of this paper is to study the determinants of import demand in India during 1960-1992. We estimate the short run and long run price elasticities, cross price elasticities (with respect to domestic price) and income elasticities of import demand. Our study differs from the previous studies on India in that we use the cointegration approach. We find that price elasticity of imports is inelastic both in the short and in the long run. Cross price elasticity and income elasticity of import demand are found to be inelastic in the short run but to be elastic in the long run.
|Number of pages||13|
|Journal||Indian Journal of Applied Economics|
|Publication status||Published - 1997|