Advanced Search
MyIDEAS: Login

Terms of Trade and Balance of Trade: Some Evidence for the Argentine Economy

Contents:

Author Info

  • Luis N. Lanteri

    ()
    (Economista senior, Banco Central de la República Argentina. Buenos Aires.)

Abstract

The terms of trade faced by commodity producing countries have improved markedly in recent years, generating significant changes in their economies. This paper examines the effect of these shocks on Argentina’s domestic product and trade balance. In particular, this paper attempts to verify the existence of the Harberger- Laursen-Metzler (HLM) effect: an increase (decrease) in the terms of trade would lead to an improvement (deterioration) in the trade balance. To this end we use a structural VAR approach, which allows us to estimate the effects of unanticipated terms of trade shocks on the domestic product and trade balance in the long run. We find preliminary evidence that supports the existence of the HLM effect. Further, positive terms of trade shocks have a positive and permanent effect on real GDP.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.economiamexicana.cide.edu/num_anteriores/XVIII-2/03_LuisLanteri_(221-248).pdf
Download Restriction: no

Bibliographic Info

Article provided by in its journal Economia Mexicana NUEVA EPOCA.

Volume (Year): XVIII (2009)
Issue (Month): 2 (July-December)
Pages: 221-248

as in new window
Handle: RePEc:emc:ecomex:v:18:y:2009:i:2:p:221-248

Contact details of provider:

Related research

Keywords: trade balance; terms of trade; Harberger-Laursen-Metzler effect; structural vector auto-regression approach.;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:emc:ecomex:v:18:y:2009:i:2:p:221-248. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ricardo Tiscareño).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.