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Determinants of ArgentinaÂ’s External Trade

Luis Catão () and Elisabetta Falcetti ()
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Luis Catão: IMF Research Department,
Elisabetta Falcetti: European Bank of Reconstruction and Development

Authors registered in the RePEc Author Service: Luís A.V. Catão ()

Journal of Applied Economics, 2002, vol. 5, 19-57

Abstract: Following the liberalization reforms of the late 80s and early 90s, several emerging market economies have experienced large and persistent trade deficits. This paper focuses on the Argentine experience, examining the extent to which trade imbalances in the 1990s resulted from income and relative price movements, as well as from shifts in foreign trade elasticities associated with structural changes. New estimates of export and import equations are presented using a broader set of variables than previous studies and distinguishing between intra and extra MERCOSUR trade. We find that considerable export sensitivity to world commodity prices, domestic absorption, and economic activity in Brazil, combined with a high income elasticity of imports, are key determinants of ArgentinaÂ’s trade balance.

Keywords: Argentina; foreign trade elasticities; international competitiveness; MERCOSUR (search for similar items in EconPapers)
JEL-codes: F11 F14 F31 (search for similar items in EconPapers)
Date: 2002
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Journal Article: Determinants of Argentina’s External Trade (2002) Downloads
Working Paper: Determinants of Argentina’s External Trade (1999) Downloads
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