Empirical Evidence on Korea¡¯s Import Demand Behavior Revisited

This paper attempts to re-examine Koreai¯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 Koreai¯s imports and its major determinants such as income and price. It is also found that income plays an important role in influencing Koreai¯s imports in both the short- and long-run. On the other hand, price is found to have a significant impact on Koreai¯s imports only in the short-run.