The supply and demand for exports in Israel

Michael Beenstock; Yaakov Lavi; Sigal Ribon

doi:10.1016/0304-3878(94)90047-7

The supply and demand for exports in Israel

Michael Beenstock^*, Yaakov Lavi, Sigal Ribon

^*Corresponding author for this work

Department of Economics

Research output: Contribution to journal › Article › peer-review

9 Scopus citations

Abstract

Using annual data for Israel over the period 1960-1989 we estimate an econometric model for the supply and demand for exports. A novel feature is that domestic absorption crowds-out export supply. Exports are imperfect substitutes in world markets for tradeables produced abroad - the price elasticity of demand is about - 1.3 while the price elasticity of supply is about 1.5. The model is simulated to calculate the effects of policy instruments and other exogenous variables on exports and export prices.

Original language	English
Pages (from-to)	333-350
Number of pages	18
Journal	Journal of Development Economics
Volume	44
Issue number	2
DOIs	https://doi.org/10.1016/0304-3878(94)90047-7
State	Published - Aug 1994

Keywords

Exports
Israel
Modelling

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10.1016/0304-3878(94)90047-7

Cite this

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AB - Using annual data for Israel over the period 1960-1989 we estimate an econometric model for the supply and demand for exports. A novel feature is that domestic absorption crowds-out export supply. Exports are imperfect substitutes in world markets for tradeables produced abroad - the price elasticity of demand is about - 1.3 while the price elasticity of supply is about 1.5. The model is simulated to calculate the effects of policy instruments and other exogenous variables on exports and export prices.

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KW - Modelling

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The supply and demand for exports in Israel

Abstract

Keywords

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