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Modelling Manufacturing Imports

Published online by Cambridge University Press:  26 March 2020

R. Anderton  and
M. Desai
R. Anderton
Affiliation:
London School of Economics
M. Desai
Affiliation:
London School of Economics
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Extract

It is universally acknowledged that imports in the UK economy have risen very rapidly; import penetration in manufacturing has risen from 26 per cent in 1980 to 34 per cent in 1986. It is felt that any reflationary programme will have little impact on domestic employment since much of the extra spending power will be spent on imports, especially imports of manufactured goods. This has led to the firm belief that a reflationary programme has to be directed towards activities which have a lower import content and hence a higher domestic output and employment multiplier. This was the belief that made infrastructural expenditure such a popular option in the political discussions before the 1987 election.

Type
Articles
Information
National Institute Economic Review , Volume 123 , February 1988 , pp. 80 - 86
Copyright
Copyright © 1988 National Institute of Economic and Social Research

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Footnotes

∗

We would like to thank B. Pesaran for his advice concerning the use of his econometric package, Data-Fit.

References

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