Time-varying parameters of Croatian import demand
The paper aims to examine Croatian import demand elasticities to changes in income and relative prices while allowing time variation in parameters of import demand. Data sample consist of quarterly time series data over the period 2000 q1 -2018 q3. Following state space model with time-va...
| Main Authors: | , , |
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| Format: | Article |
| Language: | deu |
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Faculty of Economics University of Rijeka
2019-12-01
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| Series: | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| Subjects: | |
| Online Access: | https://www.efri.uniri.hr/upload/ZBORNIK%202_2019/18-Bosnjak-Bilas-Racic-2019-2.pdf |
| _version_ | 1818494205760110592 |
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| author | Mile Bošnjak Vlatka Bilas Domagoj Račić |
| author_facet | Mile Bošnjak Vlatka Bilas Domagoj Račić |
| author_sort | Mile Bošnjak |
| collection | DOAJ |
| description | The paper aims to examine Croatian import demand elasticities to changes in income and relative prices while allowing time variation in parameters of import demand. Data sample consist of quarterly time series data over the period 2000 q1 -2018 q3. Following state space model with time-varying parameters approach estimates were obtained and tested. The results revealed persistent and high income elasticity of import demand in Croatia. However, the role of relative prices has changed over the observed period and eventually cannot be distinguished from zero. The findings from this research supported the hypothesis of prices convergence in Croatia towards the prices within European Monetary Union member countries. Furthermore, results found no significant effect on Croatian import demand when Croatia joined the European Union. The research results indicate that, due to a relatively high income elasticity of import demand and convergence of import prices, production of innovative and sophisticated products should be facilitated. |
| first_indexed | 2024-12-10T18:03:31Z |
| format | Article |
| id | doaj.art-e1daed953b9142d4a789a7279b4e4365 |
| institution | Directory Open Access Journal |
| issn | 1331-8004 1846-7520 |
| language | deu |
| last_indexed | 2024-12-10T18:03:31Z |
| publishDate | 2019-12-01 |
| publisher | Faculty of Economics University of Rijeka |
| record_format | Article |
| series | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| spelling | doaj.art-e1daed953b9142d4a789a7279b4e43652022-12-22T01:38:41ZdeuFaculty of Economics University of RijekaZbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu1331-80041846-75202019-12-0137285387210.18045/zbefri.2019.2.853Time-varying parameters of Croatian import demandMile Bošnjak0https://orcid.org/0000-0002-7663-198XVlatka Bilas1https://orcid.org/0000-0002-9021-6651Domagoj Račić2https://orcid.org/0000-0001-8380-9996international economics, nonlinear econometrics, applied econometrics, neural networksinternational economics, regional economic integrationinnovation, competitiveness, political economyThe paper aims to examine Croatian import demand elasticities to changes in income and relative prices while allowing time variation in parameters of import demand. Data sample consist of quarterly time series data over the period 2000 q1 -2018 q3. Following state space model with time-varying parameters approach estimates were obtained and tested. The results revealed persistent and high income elasticity of import demand in Croatia. However, the role of relative prices has changed over the observed period and eventually cannot be distinguished from zero. The findings from this research supported the hypothesis of prices convergence in Croatia towards the prices within European Monetary Union member countries. Furthermore, results found no significant effect on Croatian import demand when Croatia joined the European Union. The research results indicate that, due to a relatively high income elasticity of import demand and convergence of import prices, production of innovative and sophisticated products should be facilitated.https://www.efri.uniri.hr/upload/ZBORNIK%202_2019/18-Bosnjak-Bilas-Racic-2019-2.pdfimport demandincomerelative priceskalman filtercroatia |
| spellingShingle | Mile Bošnjak Vlatka Bilas Domagoj Račić Time-varying parameters of Croatian import demand Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu import demand income relative prices kalman filter croatia |
| title | Time-varying parameters of Croatian import demand |
| title_full | Time-varying parameters of Croatian import demand |
| title_fullStr | Time-varying parameters of Croatian import demand |
| title_full_unstemmed | Time-varying parameters of Croatian import demand |
| title_short | Time-varying parameters of Croatian import demand |
| title_sort | time varying parameters of croatian import demand |
| topic | import demand income relative prices kalman filter croatia |
| url | https://www.efri.uniri.hr/upload/ZBORNIK%202_2019/18-Bosnjak-Bilas-Racic-2019-2.pdf |
| work_keys_str_mv | AT milebosnjak timevaryingparametersofcroatianimportdemand AT vlatkabilas timevaryingparametersofcroatianimportdemand AT domagojracic timevaryingparametersofcroatianimportdemand |