Argentina: Trade Patterns and Challenges Ahead

22 Pages Posted: 20 Apr 2016

See all articles by Paloma Anos Casero

Paloma Anos Casero

World Bank

Valentina Rollo

Graduate Institute of International and Development Studies (IHEID) - Centre for Trade and Economic Integration (CTEI); International Trade Centre (ITC)

Date Written: February 1, 2010

Abstract

Argentinean export growth was impressive during the recent economic boom (2003-2007). However, decomposing export growth reveals that the extensive margin (increases in exports of existing products to existing markets) dominates, while the intensive margin (increases in exports of new products or new markets) contributes little to export growth. Argentina's trade product concentration has increased in the past 10 years, and the main export products remain overwhelmingly natural-resource intensive. The little diversification of non-primary exports limits the country?s ability to weather a decline in export commodity prices. The country has had some success finding new export markets, especially in Latin America, but should seek to develop deeper trade relationships with high GDP export destinations such as the European Union and the United States. Another challenge going forward is the relatively low sophistication of exports and limited integration into the global production chains, falling behind regional competitors such as Brazil. This calls for policy measures to improve the ability of existing firms to innovate and compete successfully in global markets.

Keywords: Economic Theory & Research, Trade Policy, Free Trade, Transport Economics Policy & Planning, Emerging Markets

Suggested Citation

Anos Casero, Paloma and Rollo, Valentina, Argentina: Trade Patterns and Challenges Ahead (February 1, 2010). World Bank Policy Research Working Paper No. 5221, Available at SSRN: https://ssrn.com/abstract=1565982

Paloma Anos Casero (Contact Author)

World Bank ( email )

1818 H Street
Washington, DC Washington 20433
United States
2024371780 (Phone)

Valentina Rollo

Graduate Institute of International and Development Studies (IHEID) - Centre for Trade and Economic Integration (CTEI) ( email )

Richard Wagner 1, 5th floor, CH 1201
Geneva, 1201
Switzerland

International Trade Centre (ITC) ( email )

54-56 Rue de Montbrillant
Geneva
Switzerland

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