ARDL Approach to the Demand for Disaggregate Imports: the case of Iran

10.22059/ier.2002.30861

Abstract

In this article, demand equations for import of consumer, intermediate and capital goods for the period 1971(2) to 1999(1), is estimated and analyzed, using the ARDL Pesaran & Shin method. The results show that the behavior of the different categories of imported goods in Iran is best explained by the parallel market exchange rate, implying this rate is a closer approximation fir the opportunity cost of Importers, despite their access to foreign exchange at official or controlled rates.