Exchange rate policy and trade balance: a cointegration analysis of the Argentine experience since 1962

Abstract: Using multivariate cointegration tests for non-stationary data and vector error correction models, this paper examines the determinants of trade balance for Argentina over the last forty to fifty years taking into account that the short-run impacts of currency depreciation on the trade balance behaviour may differ from the long-run effects. Our investigation confirms the existence of long-run relationships among trade balance, real exchange rate and foreign and domestic incomes for Argentina during different real exchange rate management policies. Based on the estimations, the Marshall-Lerner condition is checked and, by means of impulse response functions, we trace the effect of a one-time shock to the real exchange rate on the trade balance not finding support for a J-curve pattern in the short-run

Object Details

• Location: Deutsche Nationalbibliothek Frankfurt am Main
• Extent: Online-Ressource
• Language: Englisch
• Notes: Postprint ; begutachtet (peer reviewed) ; In: Applied Economics ; 41 (2009) 20 ; 2571-2582

Classification and Topics

• Classification: Wirtschaft

Contributors, Places and Time

• Event: Veröffentlichung
• (where): Mannheim
• (when): 2009
• Creator: Fugarolas Alvarez-Ude, Guadalupe ; Matesanz Gómez, David

Further information

• DOI: 10.1080/00036840701222660
• URN: urn:nbn:de:0168-ssoar-241644
• Rights: Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
• Last update: 25.03.2025, 1:45 PM CET