Citation
Abstract
This paper studies how exchange rate policy influences households’ consumption styles represented by food imports. We provide an empirical analysis based on the Malaysian annual data from 1980-2012. An autoregressive distributed lag model (ARDL) was utilized in interpreting long-run elasticities of food import demand as a cointegrating relation, and short-run dynamics was interpreted using ECM based on cointegrating regression of the ARDL technique. The robustness of ARDL results are verified using Dynamic OLS (DOLS) estimation technique. Our results, while providing evidence that food import demand in the country is fairly inelastic to both income growth and relative prices of food imports, also raise some important policy issues, particularly on the competitiveness of the country’s agricultural and food exports.
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Official URL or Download Paper: http://einspem.upm.edu.my/journal/fullpaper/vol11s...
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Additional Metadata
| Item Type: | Article |
|---|---|
| Divisions: | Faculty of Economics and Management Institute of Agricultural and Food Policy Studies |
| Publisher: | Institute for Mathematical Research, Universiti Putra Malaysia |
| Notes: | Special issue: Conference on Agriculture Statistics 2015 (CAS 2015) |
| Keywords: | Food import demand; Consumption pattern; ARDL; DOLS; ECM |
| Depositing User: | Nabilah Mustapa |
| Date Deposited: | 27 Apr 2017 09:55 |
| Last Modified: | 27 Apr 2017 09:55 |
| URI: | http://psasir.upm.edu.my/id/eprint/51708 |
| Statistic Details: | View Download Statistic |
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