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Determinants of Argentina’s External Trade

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  • Ms. Elisabetta Falcetti
  • Mr. Luis Catão

Abstract

This paper presents new estimates of export and import equations for Argentina, using a broader set of variables than previous studies and distinguishing between intra- and extra-MERCOSUR trade. It measures the importance of relative price versus income effects in accounting for the higher trade deficit during the 1990s, and examines whether foreign trade elasticities have increased as a result of structural changes in the economy. It finds that the high income elasticity of imports and the responsiveness of exports to changes in world commodity prices, domestic absorption, and economic activity in Brazil have been key determinants of Argentina’s trade balance.

Suggested Citation

  • Ms. Elisabetta Falcetti & Mr. Luis Catão, 1999. "Determinants of Argentina’s External Trade," IMF Working Papers 1999/121, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1999/121
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    Cited by:

    1. Víctor M. Cuevas Ahumada, 2009. "La competitividad internacional manufacturera en Argentina, México y Turquía: una investigación empírica," Economía, Gestión y Desarrollo 9355, Universidad Javeriana - Cali.
    2. Sophie Chauvin, 2001. "Exit Options for Argentina with a Special Focus on Their Impact on External Trade," Working Papers 2001-07, CEPII research center.
    3. Linda Akoto & Daniel Sakyi, 2019. "Empirical Analysis of the Determinants of Trade Balance in Post-liberalization Ghana," Foreign Trade Review, , vol. 54(3), pages 177-205, August.
    4. Cuevas, Víctor M., 2010. "The dynamics of Mexican manufacturing exports," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    5. Dario DEBOWICZ, 2010. "Real Financial Models in Argentina," EcoMod2010 259600044, EcoMod.
    6. A Duarte & J L Nicolini-Llosa & I Paya, 2007. "Estimating Argentina''s imports elasticities," Working Papers 583372, Lancaster University Management School, Economics Department.
    7. 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.
    8. repec:lan:wpaper:2379 is not listed on IDEAS
    9. repec:lan:wpaper:2602 is not listed on IDEAS
    10. Palazzo, Gabriel & Rapetti, Martín, 2023. "From macro to micro and macro back: Macroeconomic trade elasticities in a developing economy," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 223-252.
    11. repec:lan:wpaper:2460 is not listed on IDEAS
    12. Diego Nicolás Moccero, 2001. "Esquemas Cambiarios y Monetarios Alternativos en un Modelo de Interdependencia Macroeconómica entre Argentina y Brasil," Department of Economics, Working Papers 031, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
    13. Maja Kadievska-Vojnovic & Danica Unevska, 2007. "Price and Income Elasticities of Export and Import and Economic Growth in the case of the Republic of Macedonia," Working Papers 2007-01, National Bank of the Republic of North Macedonia.
    14. Athanasoglou, Panayiotis P. & Bardaka, Ioanna C., 2010. "New trade theory, non-price competitiveness and export performance," Economic Modelling, Elsevier, vol. 27(1), pages 217-228, January.
    15. Panayiotis P. Athanasoglou & Ioanna C. Bardaka, 2008. "Price and Non - Price Competitiveness of Exports of Manufactures," Working Papers 69, Bank of Greece.
    16. Serino, L.A., 2009. "Positive natural resource shocks and domestic adjustments in a semi-industrialized economy: Argentina in the 2004-2007 period," ISS Working Papers - General Series 18709, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    17. Arslan Razmi, 2013. "Correctly Analyzing the Balance of Payments Constraint on Growth," UMASS Amherst Economics Working Papers 2013-12, University of Massachusetts Amherst, Department of Economics.
    18. Luis N. Lanteri, 2016. "Exportaciones de manufacturas de origen industrial (moi) en Argentina. Manufactured exports of industrial origin (moi) in Argentina," Economia Coyuntural,Revista de temas de perspectivas y coyuntura, Instituto de Investigaciones Economicas y Sociales 'Jose Ortiz Mercado' (IIES-JOM), Facultad de Ciencias Economicas, Administrativas y Financieras, Universidad Autonoma Gabriel Rene Moreno, vol. 1(3), pages 1-22.
    19. repec:lan:wpaper:2381 is not listed on IDEAS

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    More about this item

    Keywords

    WP; exchange rate; price elasticity; foreign trade; income elasticity of imports; Argentina; Foreign Trade Elasticities; International Competitiveness; MERCOSUR; commodity export price; A. export supply equation; Argentina's export; export supply function; export equation; B. export supply; import function; aggregate import function; import demand; income elasticity; price indicator; Exports; Imports; Real exchange rates; Trade balance; Export prices; Western Hemisphere; South America;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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