HC Deb 03 November 1980 vol 991 cc461-2W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer what is his estimate of the percentage increase in the demand for (a) imported semi-manufactures and (b) imported finished manufactures for each 1 per cent. increase in the level of economic activity.

Mr. Lawson

The current version of the Treasury model incorporates an elasticity with respect to economic activity of around 1 for the volume of imports of semi-manufactures and of around 1½ for imports of finished manufactures. These estimates, which are subject to a wide margin of error, depend on the nature of the change in economic activity.