Publication
Nov 2001
Ukrainian exports can be explained by standard demand theory in the long run. Using the Johansen procedure the data do not reject the hypothesis of a unit foreign-production elasticity of Ukrainian exports, which are rather price-elastic inputs for foreign producers. It is argued that due to high domestic inflation and substantial real appreciation of the hryvnia there might be a deterministic element in the long-run relationships. When allowing for a trend in the cointegration space, the identifying restriction of an infinitely price-elastic export supply curve produces best results. However, due to missing export price statistics long-run interpretations are to be taken with care because they are conditional upon assumptions on how costs and exchange-rates are passed through on export prices.
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English (PDF, 41 pages, 128 KB) |
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Author | Hubert Strauß |
Series | Kiel Institute Working Papers |
Issue | 1084 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2001 Kiel Institute for the World Economy |