Abstract

CHENA, Pablo Ignacio  and  BOSNIC, Carolina. Economic concentration and international trade. The Marshall-Lerner condition in Argentina (1993-2013). Cuad. Econ. [online]. 2017, vol.36, n.71, pp.379-403. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v36n71.54921.

This paper analyses the effects that economic concentration on trade balance sensitivity has on changes in the Real Exchange Rate (RER). It uses Argentinian trade flows statistical data over the 1993-2013 period, with the dual purpose of identifying whether the Marshall- Lerner Condition (MLC) is met as well as the impacts of economic concentration on it. The evidence showed that RER movements do not generate significant changes in the trade balance; however, when the direct and indirect effects of the economic concentration are isolated, the sensitivity to RER increases and the MLC is met.

JEL: F14, F43, O54.

Keywords : Concentration; real exchange rate; Marshall-Lerner Condition; Argentina.

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