DEMAND AND SUPPLY FACTORS IN THE DETERMINATION OF NIE EXPORTS - A SIMULTANEOUS ERROR-CORRECTION MODEL FOR HONG-KONG - A COMMENT

Muscatelli, Srinivasan and Vines (EJ 1992) purported to refute Riedel' s (EJ 1988) finding that Hong Kong is a small, price-taking country in world markets. This comment shows, however, that MSV's results are du e entirely to an unjustifiable restriction they imposed on the estimat ed export demand equation, and not the result of using a superior esti mation technique, as they asserted.