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Latin American Trade Elasticities

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  • Thomas M Fullerton Jr

    (University of Texas at El Paso)

  • W Charles Sawyer

    (University of Southern Mississippi)

  • Richard L Sprinkle

    (University of Texas at El Paso)

Abstract

A survey of trade elasticities published for Latin American economies is conducted. Articles surveyed were published between 1975 and 1997. They include data from the mid-1950s through the mid-1990s. Imports are found to be highly income elastic as well as very price inelastic. Relatively fewer export function estimates are reported for Latin America than for other regions of the world. The estimates published indicate that exports were more elastic than anticipated under fixed exchange rate regimes. Results further indicate that Latin American trade flows respond heterogeneously to variations in domestic prices, foreign prices, and exchange rates.

Suggested Citation

  • Thomas M Fullerton Jr & W Charles Sawyer & Richard L Sprinkle, 2004. "Latin American Trade Elasticities," International Trade 0407009, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpit:0407009
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    References listed on IDEAS

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    Cited by:

    1. Thomas Fullerton & David Schauer, 2001. "Short-run maquiladora employment dynamics," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(4), pages 471-478, November.
    2. Berument, M. Hakan & Dincer, N. Nergiz & Mustafaoglu, Zafer, 2014. "External income shocks and Turkish exports: A sectoral analysis," Economic Modelling, Elsevier, vol. 37(C), pages 476-484.
    3. Martin Gürtler, 2019. "Dynamic analysis of trade balance behavior in a small open economy: the J-curve phenomenon and the Czech economy," Empirical Economics, Springer, vol. 56(2), pages 469-497, February.
    4. Thomas M Fullerton Jr & Richard L Sprinkle & Roberto Tinajero, 2004. "El Paso Customs District Cross-Border Trade Flows," International Trade 0406001, University Library of Munich, Germany.
    5. Christine Mutz & Thomas Ziesemer, 2008. "Simultaneous estimation of income and price elasticities of export demand, scale economies and total factor productivity growth for Brazil," Applied Economics, Taylor & Francis Journals, vol. 40(22), pages 2921-2937.
    6. Mutz, Christine & Ziesemer, Thomas, 2005. "Prebisch-Singer: Debates, Growth Model and Estimates," Research Memorandum 007, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    7. Mr. Márcio Valério Ronci, 2004. "Trade Finance and Trade Flows: Panel Data Evidence From 10 Crises," IMF Working Papers 2004/225, International Monetary Fund.
    8. D'Amato, Stefan Wilson & Carvalho, Luciano Dias de, 2021. "Exchange rate regimes, structural change and capital mobility in a developing economy," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    9. Thomas M Fullerton Jr & Richard L Sprinkle, 2005. "An Error Correction Analysis of U.S.-Mexico Trade Flows," International Trade 0506003, University Library of Munich, Germany.
    10. Mohsen Bahmani & Hanafiah Harvey & Scott W. Hegerty, 2013. "Empirical tests of the Marshall-Lerner condition: a literature review," Journal of Economic Studies, Emerald Group Publishing, vol. 40(3), pages 411-443, May.
    11. Thomas M Fullerton Jr & Roberto Tinajero, 2004. "Cross Border Cargo Vehicle Flows," International Trade 0405006, University Library of Munich, Germany.

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    Keywords

    Latin America; Merchandise Trade; Elasticities;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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