Empirical Evidence on Korea’s Import Demand Behavior Revisited

Abstract

This paper attempts to re-examine Korea’s import demand behavior with an enhanced
econometric technique and an up-to-date dataset. To achieve the goal, an autogressive
distributed lag (ARDL) approach is adopted. Our results show the existence of the long-run
relationship between Korea’s imports and its major determinants such as income and price. It
is also found that income plays an important role in influencing Korea’s imports in both the
short- and long-run. On the other hand, price is found to have a significant impact on Korea’s
imports only in the short-run.