Investigate the Import Demand for Consumer Goods in the Advanced Countries with the Persian Gulf Oil Countries

Recognition of import demand function, as one of the most basic macro-economic functions, and the factors affecting it is of essential importance that can be the basis for understanding international markets and will provides entry into the world trade market.The aim of this paper is to comparative study of the factors affecting import demand for two groups of countries including Persian Gulf countries and developed countries. Furthermore, by using panel data for seven selected countries from each group, the coefficients of the factors affecting demand imports of the groups will be discussed. According to the obtained results, the coefficients of the real domestic income, relative price of imports and the exchange rate for the two groups of countries are as follows: There is no much difference in index of relative price of imports and real domestic income between the two groups of countries. However, the exchange rate in the Persian Gulf states (about 1.5 units) has a greater impact on import demand function

Keywords:

Import demand function , panel data , real domestic income , relative prices of import , exchange rate