Determinants Of Argentinas External Trade

Download or read book Determinants of Argentina’s External Trade written by Mr.Luis Catão and published by International Monetary Fund. This book was released on 1999-09-01 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.