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Argentina : trade patterns and challenges ahead

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  • Anos-Casero, Paloma
  • Rollo, Valentina

Abstract

Argentinean export growth was impressive during the recent economic boom (2003-2007). However, decomposing export growth reveals that the extensive margin (increases in exports of existing products to existing markets) dominates, while the intensive margin (increases in exports of new products or new markets) contributes little to export growth. Argentina's trade product concentration has increased in the past 10 years, and the main export products remain overwhelmingly natural-resource intensive. The little diversification of non-primary exports limits the country’s ability to weather a decline in export commodity prices. The country has had some success finding new export markets, especially in Latin America, but should seek to develop deeper trade relationships with high GDP export destinations such as the European Union and the United States. Another challenge going forward is the relatively low sophistication of exports and limited integration into the global production chains, falling behind regional competitors such as Brazil. This calls for policy measures to improve the ability of existing firms to innovate and compete successfully in global markets.

Suggested Citation

  • Anos-Casero, Paloma & Rollo, Valentina, 2010. "Argentina : trade patterns and challenges ahead," Policy Research Working Paper Series 5221, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5221
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    References listed on IDEAS

    as
    1. Anderson, Kym & Tyers, Rod, 1986. "Agricultural Policies of Industrial Countries and Their Effects on Traditional Food Exporters," The Economic Record, The Economic Society of Australia, vol. 62(179), pages 385-399, December.
    2. Valdés, Alberto & Zietz, Joachim A., 1980. "Agricultural protection in OECD countries: its cost to less-developed countries," Research reports 21, International Food Policy Research Institute (IFPRI).
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    Keywords

    Economic Theory&Research; Trade Policy; Free Trade; Transport Economics Policy&Planning; Emerging Markets;

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