An analysis of the external constraint of Argentina through its aggregate and sectoral foreign trade elasticities

FLORENCIA FARES; GABRIEL PALAZZO; GUIDO ZACK

Bahía Blanca

Congreso; XX Jornadas Latinoamericanas de Teoría Económica (JOLATE); 2019

Asociación Latinoamericana de Teoría Económica (ALTE)

The economic growth of many developing countries depends not only on the evolution ofthe production factors but also on their capacity to finance foreign exchange. For this reason,the foreign trade elasticities are a key variable. In this article, price and income elasticities ofArgentina are estimated in aggregate terms and disaggregated by productive sectors andtechnological intensity. Although this paper is still in working process, the first findings showthat the country faces difficulties to reach a similar growth rate to its main trading partnersin aggregate terms. However, there could be some productive sectors with the considerablepotential to save and/or generate foreign currency.