Explaining Nigeria's import demand behaviour: a bound testing approach

Abstract

Purpose

The purpose of this paper is to present an empirical analysis of the aggregated import demand behavior for Nigeria using annual data between 1980 and 2006.

Design/methodology/approach

The bounds test analysis was used to estimate the long‐run relationship between imports and its determinants.

Findings

Test results show that imports, income and relative prices are cointegrated. The estimated long‐run elasticities of import demand with respect to income and relative prices are 2.48 and −0.133, respectively.

Originality/value

These results suggest that the Marshall‐Lerner condition are not satisfied for Nigeria.

Citation

Adetunji Babatunde, M. and Egwaikhide, F.O. (2010), "Explaining Nigeria's import demand behaviour: a bound testing approach", International Journal of Development Issues, Vol. 9 No. 2, pp. 167-187. https://doi.org/10.1108/14468951011062354