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

Journal article | Zeitschriftenartikel

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

• Extent: Seite(n): 2571-2582
• Language: Englisch
• Notes: Status: Postprint; begutachtet (peer reviewed)

References and Relationships

• Bibliographic citation: Applied Economics, 41(20)

Classification and Topics

• Subject: Wirtschaft ; Wirtschaftsstatistik, Ökonometrie, Wirtschaftsinformatik ; Volkswirtschaftslehre ; Handelsbilanz ; Wechselkurs ; Argentinien ; Wirtschaftspolitik ; Kaufkraft

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fugarolas Alvarez-Ude, Guadalupe ; Matesanz Gómez, David
• Event: Veröffentlichung
• (where): Vereinigte Staaten von Amerika
• (when): 2009

Further information

• DOI: https://doi.org/10.1080/00036840701222660
• URN: urn:nbn:de:0168-ssoar-241644
• Rights: GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
• Last update: 21.06.2024, 4:27 PM CEST