Terms of Trade and Balance of Trade: Some Evidence for the Argentine Economy
AbstractThe 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 InfoIf 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.
Bibliographic InfoArticle provided by in its journal Economia Mexicana NUEVA EPOCA.
Volume (Year): XVIII (2009)
Issue (Month): 2 (July-December)
Contact details of provider:
Find related papers by JEL classification:
- C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
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.