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Chile; Trade Performance, Trade Liberalization, and Competitiveness

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  • Brieuc Monfort

Abstract

This paper analyses the evolution of Chile's trade between 1990 and 2007, studying in particular the impact of trade liberalization in addition to traditional price and demand determinants. The results show that export and import flows are mainly responsive to external and domestic demand, and less so to relative prices, although there is a small impact on imports. In addition, the analysis suggests that trade liberalization may have played a role in increasing exports and imports. Estimations of trade elasticities for other countries in Latin America tend to confirm the results found for Chile.

Suggested Citation

  • Brieuc Monfort, 2008. "Chile; Trade Performance, Trade Liberalization, and Competitiveness," IMF Working Papers 08/128, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:08/128
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    References listed on IDEAS

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    1. NOWAK-LEHMANN D., Felicitas & HERZER, Dierk & VOLLMER, Sebastian, 2007. "The Free Trade Agreement Between Chile And The Eu: Its Potential Impact On Chile’S Export Industry," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
    2. Keiko Murata & Dave Turner & David Rae & Laurence Le Fouler, 2000. "Modelling Manufacturing Export Volumes Equations: A System Estimation Approach," OECD Economics Department Working Papers 235, OECD Publishing.
    3. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
    4. Juan Nicolás Hernández, 2005. "Demanda De Importaciones Para El Caso Colombiano: 1980 - 2004," Borradores de Economia 356, Banco de la Republica de Colombia.
    5. Claudio A Paiva, 2003. "Trade Elasticities and Market Expectations in Brazil," IMF Working Papers 03/140, International Monetary Fund.
    6. Juan Nicolás Hernández, 2005. "Demanda De Exportaciones No Tradicionales En Colombia," BORRADORES DE ECONOMIA 002268, BANCO DE LA REPÚBLICA.
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    Cited by:

    1. Tarziján, Jorge, 2013. "The emergence of world-class companies in Chile: Analysis of cases and a framework to assess integration decisions," Journal of Business Research, Elsevier, vol. 66(10), pages 1728-1735.
    2. Medina, Juan Pablo & Soto, Claudio, 2016. "Commodity prices and fiscal policy in a commodity exporting economy," Economic Modelling, Elsevier, vol. 59(C), pages 335-351.

    More about this item

    Keywords

    Exports; Competition; Chile; Imports; Trade liberalization; trade elasticities; competitiveness; reer; tariff rate; domestic demand; trade flows;

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