In this paper, I provide estimates of the Import demand function for Korea for the period of 1971 – 1988. Second, considering the possibility of structural change in our data period, we test the stability of the coefficients. Cusum of squares test result shows the constancy of the parameters broken between pre‐1980 and post‐1981 data. The estimation result based on data only after 1981 shows that the income elasticity becomes less responsive over time and the relative prices do not exercise significant influence on Korean imports.
|Number of pages||5|
|Journal||Asian Economic Journal|
|State||Published - Jul 1992|