Author Affiliation, Ana.
Department of Economics
The demand for imports in Jamaica: 1972-2000
Karagiannis, Nikolaos.; Witter, Michael.
The Caribbean economies in an era of free trade
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Aims to investigate the hypothesis that imports are separable from primary factors of production in Jamaica, and to do so, a three input - two output translog cost function is estimated. This function allows for testing a wide variety of hypotheses without imposing these a priori. Notes that real output is divided into tradeable and non-tradeable goods produced by three factors of production - imported materials, capital and labour services. The share equations are derived, and price elasticities of demand for inputs are estimated based on the model for the period 1972 to 1998. The rest of the chapter is made up of four sections. Section 2 examines the translog model as well as the data requirements. Section 3 reports the estimation technique, testing and results. Section 4 compares the results with those of a number of similar studies. Closes with a summary and some concluding remarks.....