Determinants of Argentina’s External Trade

September 1, 1999

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Format: Chicago

Elisabetta Falcetti, and Luis Catão. Determinants of Argentina’s External Trade, (USA: International Monetary Fund, 1999) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Export prices, Exports, Foreign exchange, Imports, International trade, Prices, Real exchange rates, Trade balance

Keywords: A. export supply equation, Aggregate import function, Argentina, Argentina's export, B. export supply, Commodity export price, Exchange rate, Export equation, Export prices, Export supply function, Exports, Foreign trade, Foreign Trade Elasticities, Import demand, Import function, Imports, Income elasticity, Income elasticity of imports, International Competitiveness, MERCOSUR, Price elasticity, Price indicator, Real exchange rates, South America, Trade balance, Western Hemisphere, WP

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/121
Stock No:

WPIEA1211999
ISBN:

9781451854367
ISSN:

1018-5941

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