Chile: Trade Performance, Trade Liberalization, and Competitiveness

Author/Editor:

Brieuc Monfort

Publication Date:

May 1, 2008

Electronic Access:

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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 analyses the evolution of Chile's trade between 1990 and 2007, studying in particular the impact of trade liberalization in addition to traditional price and demand determinants. The results show that export and import flows are mainly responsive to external and domestic demand, and less so to relative prices, although there is a small impact on imports. In addition, the analysis suggests that trade liberalization may have played a role in increasing exports and imports. Estimations of trade elasticities for other countries in Latin America tend to confirm the results found for Chile.

Series:

Working Paper No. 2008/128

Subject:

Demand elasticity Exports Imports Real effective exchange rates Trade liberalization

English

Publication Date:

May 1, 2008

ISBN/ISSN:

9781451869873/1018-5941

Stock No:

WPIEA2008128

Pages:

33

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