RDP 9707: Internationalisation and Pricing Behaviour: Some Evidence for Australia Appendix B: OLS Estimates of Industry Level Responses to Import Prices

James O'Regan, Jenny Wilkinson

October 1997

Table B1: Industry Estimates of Long-run Import Price Elasticity and Speed of Adjustment(a)
Industry Long-run elasticity Speed of adjustment
Point
estimate		 t-statistic
 		 Point
estimate		 t-statistic
 
Fruit and vegetables −1.52 −1.42 0.016 2.52
Margarines, oils and fats 2.08 0.94 0.026 1.03
Alcohol 0.72 4.50 0.043 3.02
Textiles 0.82 8.50 0.079 4.68
Clothing 1.13 1.36 0.019 3.14
Footwear −0.19 −0.39 0.034 2.34
Sawmill products 0.67 12.04 0.116 2.77
Woodboards, veneers and joinery 0.56 3.43 0.049 3.52
Furniture and mattresses 0.59 2.25 0.038 4.77
Pulp, paper and paperboard 1.21 1.44 −0.018 −0.61
Chemical fertilisers −0.73 −0.94 0.027 1.83
Basic chemicals 0.45 0.91 0.048 0.96
Pharmaceutical and veterinary products; pesticides 0.61 0.82 0.018 2.05
Cosmetics and toilet preparations 0.39 1.28 0.052 1.63
Petroleum and coal products 0.73 2.83 0.136 1.68
Glass and glass products 0.51 4.39 0.081 2.71
Clay products 0.38 2.00 0.020 2.82
Structural products, sheet metal 0.79 2.90 0.031 2.11
Motor vehicles and parts 0.68 6.05 0.039 2.53
Photographic, professional and scientific equipment 0.49 3.87 0.128 2.24
Electronic equipment 0.67 1.91 0.054 1.71
Refrigerators, household 0.83 5.27 0.062 4.53
Electrical equipment n.e.c. 0.49 0.67 0.025 2.28
Agricultural machinery 1.15 4.32 0.072 3.59
Construction machinery 0.90 4.31 0.084 2.77
Machinery and equipment n.e.c. 0.36 2.83 0.058 3.00
Leather products 0.74 3.26 0.088 1.71
Rubber products 0.73 3.25 0.062 3.68
Signs, advert displays; writing equipment 0.87 9.45 0.112 5.32
Manufacturing n.e.c. 0.37 1.15 0.057 2.34
Note: (a) Estimated in single equations using OLS. The distribution of the t-statistics on the speed-of-adjustment coefficients are between a standard normal and Dickey-Fuller distributions. The distribution of t-statistics on the long-run elasticity estimates (derived using a Bewley transformation) are standard.