BARONE SERGIO VICTOR
Congresos y reuniones científicas
Título:
Transitory and Permanent Terms of Trade Shocks and the Current Account in Latin American Countries
Lugar:
Montevideo, Uruguay
Reunión:
Conferencia; International Society for Comparative Economic Studies ISCES. Arnoldshain IX Seminar International Crisis and Development. Private and Public Responses; 2009
Institución organizadora:
Universidad de la República
Resumen:
We investigate if the terms of trade have an influence on the current account on Latin American countries, and if the transitory or permanent duration of the shocks matter. Since terms of trade volatility is a major source of instability in these economies, identification of the presence and magnitude of such link is of policy relevance under the rule to smooth transitory shocks, adjust to permanent shocks. The duration of terms of trade shocks and the influence of the degree of persistence for 18 Latin American countries during 1976-2007 is assessed using panel regression: the association of both transitory and permanent shocks with the current account is found to be positive and statistically significant