engleski

Short-term import demand elasticities: the case of Hungary

This paper attempts to explore the short-term dynamics of price and income import demand elasticities in the case of Hungary. Research data encompass the time period from 1996Q1 to 2018Q3. Using a relatively novel approach of T.V.P. (time-varying parameters) this paper gives further insight into the short-term dynamics of Hungarian imports. Income import demand elasticity was found to be significant and mostly positive while price effect was time-dependent and bidirectional rendering itself non-significant in the final state. Furthermore, Hungary’s accession to European Union was not significantly influencing import demand patterns with other European Union members. These findings add new information to the body of knowledge regarding import trade elasticities of transition countries.

time-varying parameters ; import demand ; elasticities ; Kalman filter ; Hungary

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