The Impact of Trade Openness on Relative Equipment Prices: Lessons from Latin America

Jessica Madariaga and Anton Bekkerman

Economica, 2020, vol. 87, issue 348, 938-984

Abstract: Trade can affect relative equipment prices because equipment production is concentrated among a small group of developed countries and many developing nations rely heavily on equipment imports. We construct a new dataset of relative equipment prices for thirteen Latin American countries from 1970 to 2011 in order to help identify which trade channels affect these prices. We show that both the composition of trade and countries’ trade partners matter. Overall, increasing trade intensity in equipment with major equipment‐producing countries is associated with the largest relative price reductions, but there is significant heterogeneity across countries in their responsiveness to changes in trade intensity and trade restrictions.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ecca.12332

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:bla:econom:v:87:y:2020:i:348:p:938-984

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0427

Access Statistics for this article

Economica is currently edited by Frank Cowell, Tore Ellingsen and Alan Manning

More articles in Economica from London School of Economics and Political Science Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().