Determinants of consumer import demand in Barbados: An econometric investigation

Author(s): Jordan, Alwyn (1998)

Created 22 Jul, 1998
Categories Working Papers
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This paper aims to estimate the imported consumer goods demand function for Barbados using yearly data over the period 1973-1997, and to test for cointegration using both the Engle and Granger two step methods and the more powerful Johansen Cointegration test. The contribution of this study is that it attempts to apply relatively new Econometric techniques to facilitate a better understanding of Consumer Import Demand in Barbados. As a result, tests for cointegration were conducted and vector autoregressive modeling was used to determine the order of the cointegrating equations. This study builds on the work of three previous import studies conducted for Barbados, namely ‘The Demand for Imports: the Case for Barbados 1954-1970 conducted by Mr. Wallace Joefield Napier. Secondly, ‘A Case Study of Imports Income and Spending’ conducted by Dr. DeLisle Worrell in 1988. The third most recent study entitled ‘Modeling Aggregate import Demand in Barbados,’ was conducted by Dr. Roland Craigwell in 1994.

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