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The Land of Milk and Honey: A case study of Argentinean trade with a focus on primary commodities

Mohammed, Hanas LU and Palm, Emilia LU (2012) NEKH01 20121
Department of Economics
Abstract
Argentina is a country enriched with an abundance of natural resources. This great wealth of primary commodity goods has turned the region into one of the world’s most prominent exporters of agricultural goods like soybeans, wheat and oil. However, there is more to the story than just milk and honey. In light of the fluctuating nature of primary commodity prices, countries with high primary commodity dependence are vulnerable to the constant changes in the world market. Using traditional trade theory, the aim of this essay has been to investigate whether Argentina’s current trade patterns are sustainable or not. We have applied three different methods to obtain our results; a trade share analysis of total exports and imports, a gravity... (More)
Argentina is a country enriched with an abundance of natural resources. This great wealth of primary commodity goods has turned the region into one of the world’s most prominent exporters of agricultural goods like soybeans, wheat and oil. However, there is more to the story than just milk and honey. In light of the fluctuating nature of primary commodity prices, countries with high primary commodity dependence are vulnerable to the constant changes in the world market. Using traditional trade theory, the aim of this essay has been to investigate whether Argentina’s current trade patterns are sustainable or not. We have applied three different methods to obtain our results; a trade share analysis of total exports and imports, a gravity model and a price volatility analysis. The final results proved tendencies towards primary commodity dependence; this was evident in both the total shares analysis and gravity regression. Additionally, the prices of the three most commonly traded primary goods that represented over 34 % of total exports in 2009 were highly irregular. Thus, we could conclude that Argentina’s trade patterns in fact are not sustainable. (Less)
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author
Mohammed, Hanas LU and Palm, Emilia LU
supervisor
organization
course
NEKH01 20121
year
type
M2 - Bachelor Degree
subject
keywords
Primary Commodity Dependence, Argentina, Mercosur, Gravity Model, Price Volatility, Trade Patterns
language
English
id
2797423
date added to LUP
2012-06-15 12:59:01
date last changed
2012-06-15 12:59:01
@misc{2797423,
  abstract     = {Argentina is a country enriched with an abundance of natural resources. This great wealth of primary commodity goods has turned the region into one of the world’s most prominent exporters of agricultural goods like soybeans, wheat and oil. However, there is more to the story than just milk and honey. In light of the fluctuating nature of primary commodity prices, countries with high primary commodity dependence are vulnerable to the constant changes in the world market. Using traditional trade theory, the aim of this essay has been to investigate whether Argentina’s current trade patterns are sustainable or not. We have applied three different methods to obtain our results; a trade share analysis of total exports and imports, a gravity model and a price volatility analysis. The final results proved tendencies towards primary commodity dependence; this was evident in both the total shares analysis and gravity regression. Additionally, the prices of the three most commonly traded primary goods that represented over 34 % of total exports in 2009 were highly irregular. Thus, we could conclude that Argentina’s trade patterns in fact are not sustainable.},
  author       = {Mohammed, Hanas and Palm, Emilia},
  keyword      = {Primary Commodity Dependence,Argentina,Mercosur,Gravity Model,Price Volatility,Trade Patterns},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Land of Milk and Honey: A case study of Argentinean trade with a focus on primary commodities},
  year         = {2012},
}