Aggregate Import Demand and Bank Credit in Southeast Asia: An Empirical Study.

Abstract

This study has empirically re-estimated aggregate import demand equation for five selected Southeast Asian economies, namely Malaysia, Singapore, Indonesia, Thailand and the Philippines. This study contributes to existing literature by incorporating bank credit in explaining the demand for imports, relative price of imports, activity variable, and bank credit for the case of Singapore, Indonesia, and Thailand. However, no cointegration has been suggested for the case of malaysia, and the Philippines.