Determinants of Imports in Guinea
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Date
2021-07-12
Authors
Agbeno, Yao
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
The objective of this paper is to examine the factors that influence Guinea's
overall import demand using annual data covering the period 1980-2015.
Through the Error Correction Model (ECM), we estimated the short- and long-term
relationships to measure the effect of real investment expenditure, real effective
exchange rate, real final consumption demand and trade policy on import
demand, after testing the existence of a cointegration relationship between
the different variables of the model. The results showed that in the short term
as in the long term, the demand for real investment, the real demand for final consumption and the trade policy based on the adoption of the new tariff system
from 2005 are the main determinants of the import request in Guinea. These results
allowed us to draw some implications for economic policy.