Unlocking Factors Driving Import Demand in ECOWAS Countries: Evidence from a Heterogeneous Panel ARDL Analysis ()
ABSTRACT
This study examines
the factors determining the demand for imports of the member countries of the Economic Community of West
African States (ECOWAS) over the period from 1980 to 2017. As a modelling
strategy, we employ the Common Correlated
Effect Mean Group (CCEMG) estimator that accounts for both heterogeneity and cross-sectional dependence across
countries. The study provides various pieces of evidence through whole-panel and country-level analyses. The results from the
panel analysis indicate that income, relative price of imports, foreign direct
investment and remittances are significant determinants of import demand in
ECOWAS. Income, relative price and remittances have, on average, positive
effect on import in the long run. In the short run, all explanatory variables are
positively related to imports. Country-level results reveal, however, considerable heterogeneity across countries in the relationship
between import demand and its determinants.
Share and Cite:
Keho, Y. (2022) Unlocking Factors Driving Import Demand in ECOWAS Countries: Evidence from a Heterogeneous Panel ARDL Analysis.
Modern Economy,
13, 1312-1326. doi:
10.4236/me.2022.1310070.
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