TY  - JOUR
AU  - Burkett,John
AU  - Portes,Richard
AU  - Winter,David
TI  - Macroeconomic Adjustment and Foreign Trade of Centrally Planned Economies
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 736
PY  - 1981
Y2  - August 1981
UR  - http://www.nber.org/papers/w0736
L1  - http://www.nber.org/papers/w0736.pdf
N1  - Author contact info:
John Burkett

Richard Portes
London Business School
Regent's Park
London NW1 4SA
UNITED KINGDOM
Tel: 44 (0)  20 7000 8424
Fax:  44 (0) 20 7000 8401
E-Mail: rportes@london.edu

David Winter
AB  - This empirical study stresses the underlying macroeconomic forces which determine foreign trade flows in CPEs. The general specification includes a planners' demand equation for the volume of imports, a planners' supply equation for the volume of exports, and a rest-of-world demand equation for the export price level. The planners' behavioural equations include variables for activity levels, trade balance constraints, prices, and domestic excess demand. The import price is exogenous. This simultaneous equation model is estimated on annual data from the mid-1950s to the mid-1970s, for Czechoslovakia, the GDR, Hungary, and Poland. Maximum likelihood estimation in a nested hypothesis testing framework allows selection of restricted versions of the general model for each country. Estimated price elasticities accord with the underlying theory, and the excess demand variables perform well.
ER  -