Estimating an Import Function for Jordan: A Cointegration Analysis

Fuad Kreishan


This paper investigates the Jordanian aggregate imports during the period 1972-2004.  The cointegration and error correction modeling methods have been used.   Having determined the order of integration of variables by applying Augmented Dickey-Fuller (ADF) test, we applied the Johansen-Juselius method of cointegration in the estimated model. The empirical findings were one cointegration equation explaining the long-run relationship amongst variables within a given model. The empirical results suggest that the aggregate import volume is found to be both price and income inelastic. Moreover, import liberalisation under the Structural Adjustment Programs (SAPs) is found to have no impact on import demand for Jordan.


Import function, Cointegration Analysis, Jordan

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