Abstract

This study empirically estimates the critical parameters of import demand determinants for GCC countries (Bahrain, United Arab Emirates, Kuwait, Oman Qatar and Saudi Arabia) by using annual time series-cross section data (1994-2008) and by applying panel Seemingly Unrelated Regression (SUR) model. The empirical results confirm that, in both long run and short run, there are positive and significant relationships between the demand for imports and real income, private consumption, international reserves and gross capital formation. On the other hand, there are negative and significant relationships between the demand for imports and the relative price of imports to domestic price and government consumption in the long run, but negative and insignificant relationships in the short run.

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