Empirical analysis of the demand elasticity for tunisian ex-ports

• Sami Khedhiri ^[1] ; Tarek Bouazizi ^[2]
  1. [1] University of Wollongong

     University of Wollongong

     Australia

     
  2. [2] University of Tunis, Tunisia
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 7, Nº. 1, 2007, pág. 133
• Idioma: inglés
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• Resumen

  • The objective of this paper is to estimate the demand elasticity for Tunisian exports using recently developed non-stationary panel methodologies. We consider quarterly data of Tunisian exports to the major European trading partners from 1987 to 2004. Our estima-tion results of the price and foreign income elasticities of demand for Tunisian exports suggest a significant relationship between the real exchange rate index and Tunisian ex-port demand, both in the long-run and in the short-run. The results also suggest that cur-rency devaluation policy alone may not be very effective in promoting Tunisian exports which are found to be inelastic with respect to real exchange rate.