Abstract
AbstractThis paper examines Argentine exports at the firm level between 2003 and 2011, a period of exceptional and sustained export growth. While at the product level, the pattern of specialisation barely changed, exporters exhibit new dynamics in international markets: firms not only expanded sales abroad by increasing their exports in existing markets, but also by entering into new destinations and adding new products. That is, new export strategies allowed exporters achieve greater resistance to the variations in the macroeconomic environment. We find that the importance of the different export margins changes overtime: while the currency is depreciated, the intensive margin explains most of export growth, whereas the subextensive and extensive margins become the main source of export growth once the currency appreciates. We also uncover a strong complementarity between import and export growth.
Highlights
Between 2003 and 2011, Argentine exports increased 179%
For the strong export growth period 2003–08, we have shown that firms grew in their extensive margin and subextensive margin of exports but that their growth was accompanied by a strong rise in imports, both in terms of value and in terms of the number of varieties imported
We examined export growth in Argentina between 2003 and 2011 and focused on firm export dynamics
Summary
Between 2003 and 2011, Argentine exports increased 179%. This is one of the longest periods of sustained export growth for this country (Albornoz, 2013) and is characterised by big changes in the macroeconomic environment, with years of low and high real exchange rates and variations in terms of trade. This is consistent with highly dynamic export growth even in the presence of exchange appreciation This result suggests that during the period 2003–11, firms did increase sales of the same products in known markets, but they expanded to new markets and that their export performance became more resistant to changes in exchange rates and disruptions in the economic cycle. We observe a slight but gradual decline that set the weight of exports over GDP at a value close to 15%, considerably higher than its values at the end of the 1990s This suggests that the international insertion of Argentine products was strengthened by the devaluation (Phase I) and maintained relatively high levels despite the appreciation of the real exchange rate during Phase II.. If we focus on “established firms,” which is to say, those that exported for at least two TABLE 1 Descriptive statistics on exports for the period 2003–11
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
