Co-movements in terms of trade volatility in land-abundant countries

María Virginia Mattheus and Alberto Martín Díaz Cafferata

No 07/11, Working Papers from Instituto Universitario de Análisis Económico y Social

Abstract: We conjecture that extreme land abundant endowment constitutes a structural restriction driving sectoral specialization and terms of trade volatility. We estimate and compare several volatility indicators for Argentina, Australia and New Zealand in 1870-2009 finding co-movements, structural breaks in variability, significant cross correlations between TOT cycles, and in some cases heteroskedasticity. If “first nature” land-abundance is a long-term structural restriction, development policies for this type of economies must balance reductions in TOT volatility through export diversification (at rising costs) and a combination of efficiency improvements and internal flexibility to manage volatility effects.

Keywords: Terms of trade; Volatility; Heteroskedasticity; Argentina; Australia; New Zealand (search for similar items in EconPapers)
Pages: 42 pages
Date: 2011-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www3.uah.es/iaes/publicaciones/DT_07_11.pdf First version, 2011 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uae:wpaper:0711

Access Statistics for this paper

More papers in Working Papers from Instituto Universitario de Análisis Económico y Social Contact information at EDIRC.
Bibliographic data for series maintained by Laura Suarez ().