AEstimating Imports Using ggregate Demand for Import andAggregate Expenditure Components in Iran: An Econometric Analysis

In this paper, the behaviour of Iran`s imports during the period 1353-1382 is studied using disaggregated expenditure components of total national income. Usinge of disaggregated components of total national income for obtaining import demand is a new approach that is differs from traditional approach, which onlyjust uses domestic income and relative prices. In this regard, we use ARDL cointegration method and for purpose separating the short- and long-run elements, in case of imports demand, we use Error Correction Model. The study shows inelastic import demand for all the expenditure components and relative price. In the short- and long-run, exports and Investment are the major determinantse of movements in imports in Iran. Import demand for imports is not very sensitive to price changes.