Export Behavior In 5 ASEAN Countries : An Econometric Investigation

Many previous studies on the behavior of aggregate exports have ignored the simultaneous relationship between quantity and price. In this study, we have taken explicit account of this simultaneity specifying well-defined models of export demand and supply, and by estimating these models simultaneously for five ASEAN countries. The results indicate that export demand relative price elasticities are smaller for the sample of ASEAN5. A positively sloped function of export supply is found to exist for a majority of countries in the sample.