Estimating the G20 import demand function for the period 2016-2021

Abstract

This research aims to identify the most important determinants that affect the volume of imports of the G20 countries for the period 2016-2021. In order to achieve this purpose, the standard approach was relied upon to empirically verify the impact of the determinants of demand on imports represented by: gross domestic product, relative prices of imports, The degree of openness to global trade, the exchange rate, and the spread of the Corona epidemic, and by applying it to the data of the Group of Twenty industrialized countries for the period (2016-2022). Longitudinal data models or aggregated cross-sectional time series (Panel data) were used in analysing the study data and using the econometrics and time series software Eviews- 12. The results of the research showed that the degree of openness to global trade is the variable that most affects the imports of the industrialized countries in the study sample, followed by the spread of the Corona epidemic in second place, then the gross domestic product in third place, then the relative prices of imports in fourth place, while the effect of the exchange rate on imports has not been proven.