Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192141 
Year of Publication: 
1995
Series/Report no.: 
Discussion Papers No. 157
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
This paper investigates the determinants of Norwegian import prices of manufactures over the period 1970(1) - 1991(4). Multivariate cointegration analysis establishes a long-run relationship between import prices, foreign prices, the exchange rate and domestic unit labour costs. Normalized on import prices, the long-run elasticities are 0.63 (foreign prices and the exchange rate) and 0.37 (domestic costs). Deviations from this relationship are highly significant in a structural import price equation, which also contains positive effects of growth in domestic demand and inflation, as well as a negative effect from the Norwegian unemployment rate. The estimated parameters appear reasonably stable within the sample.
Subjects: 
Import price formation
pricing to market
domestic effects
Johansen procedure
structural error correction model
super exogeneity.
JEL: 
C32
C51
C52
C22
D40
F41
L16
Document Type: 
Working Paper
Document Version: 
Digitized Version

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