Comprehensive studies of individual countries, in some cases, have included price variables as detriminants of imports and exports, no matter how useful, can’t really hope to generalize their findings to encompass all of the developing countries. On a recent study conducted by Houthakker and Magee in 1969, had put into consideration the trading patterns of developing countries, and now serves as one of the basis for studying the developing countries comprehensively.

Essentially, this article aims to give an intelligent estimates of the 15 countries, which can be classified as ‘developing’, in terms of their import as well as export demand functions and to test the hypothesis of whether the abrupt changes in the market prices of both traded and nontraded products can produce a definitely significant impact on the trade flows of the countries categorized earlier. In addition, an attempt has been made to further demonstrate the important role of certain quantitative restrictions on trade can be approximated and ultimately incorporated into the estimates made. It is highly necessary to take into consideration the things stated above for the reason that: on the import side of the trading accounts, control has often been considered as commonplace in developing countries. As for the export side, its attention is mainly focused on the imposition of quotas and other pertinent subjects that would affect it.