Estimating elasticities of demand and supply for South African manufactured exports using a vector error correction model

Elasticities of demand and supply for South African manufactured exports are estimated using the co-integrating vector autoregression / vector error correction model approach in order toaddress simultaneity and non-stationarity issues. Demand is highly price-elastic, ranging from-3 to -6. The price elasticity of supply is 1. Competitors' prices and world income are an important determinant of demand, but domestic capacity utilization is not an important determinant of export supply.

Grantor dc:publisher.institution

School of Management Studies

Year dc:date.issued

2002

Author dc:creator

• Behar, Alberto

Advisor dc:contributor.advisor

• Edwards, Lawrence

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/11427/10118

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/10118