The Land of Milk and Honey: A case study of Argentinean trade with a focus on primary commodities
(2012) NEKH01 20121Department 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)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2797423
- author
- Mohammed, Hanas LU and Palm, Emilia LU
- supervisor
- organization
- course
- NEKH01 20121
- year
- 2012
- 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}}, 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}}, }