Study on motor car imports in Barbados from 1973 until 1997

This paper on motor car imports for the period 1973 until 1997 has been written against the background that firstly, motor cars impact to some extent on Barbados' balance of payments outcome, and by extension, on the country's foreign reserves. Secondly, they account for over 50% of consumer durables in Barbados and thirdly, they are contributing to the increasing problem of traffic congestion which the country presently faces. The Paper also examines the trends in motor cars imports during the above-mentioned period when Barbados experienced periods of economic boom and recessions, identifies those variables which influence motor cars in the long and short run with the use of regression analysis, and looks at policy implications from the results obtained. The regression results show that in the long-run, real income, motor cars credit, motor car repayments, an attitude index and a Government policy variable, representing the period when import licences to import motor cars were suspended, help to explain motor car imports. In the short-run, the variables affecting motor car credit, motor car repayments, relative prices and previous motor car purchases from abroad.