Real exchange rate and export performance in Argentina, 2002-2008

Between 2002 and 2008, Argentina experienced a phase of very high and sustained economic growth. During this period, macroeconomic policy aimed to preserve a stable and competitive real exchange rate (SCRER). There is controversy on whether the SCRER policy was a key factor fostering growth and, eve...

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Bibliographic Details
Published in:Journal of post Keynesian economics 2017-01, Vol.40 (1), p.75-94
Main Authors: Palazzo, Gabriel, Rapetti, Martín
Format: Article
Language:English
Subjects:
Argentina
export surges
F140
F410
real exchange rate
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Summary:Between 2002 and 2008, Argentina experienced a phase of very high and sustained economic growth. During this period, macroeconomic policy aimed to preserve a stable and competitive real exchange rate (SCRER). There is controversy on whether the SCRER policy was a key factor fostering growth and, even more, on whether it helped promote the expansion of tradable activities and exports. We use a methodology to detect episodes of export surges among Argentina's export industries and find that labor-intensive industries-especially low- and medium-technology manufactures-experienced the highest proportion of export surges within this period. We also find that between 1980 and 2015, the highest proportion of surges in total exports occurred during the 2003-8 period. The performance of export of services was also particularly dynamic during this period. This evidence suggests that the SCRER policy was instrumental for export surges in Argentina during 2002-8.
ISSN:0160-3477
1557-7821
DOI:10.1080/01603477.2016.1273073