Determinants of Argentina’s External Trade

Author/Editor:

Elisabetta Falcetti ; Luis Catão

Publication Date:

September 1, 1999

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 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.

Series:

Working Paper No. 1999/121

Subject:

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

English

Publication Date:

September 1, 1999

ISBN/ISSN:

9781451854367/1018-5941

Stock No:

WPIEA1211999

Pages:

35

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