Foreign trade elasticities in Argentina: a limitation to growth?

Foreign trade elasticities condition the rate of growth an economy can reach in the long term. In the present article, an estimation of price and income elasticities is made for the 1996-2013 period in Argentina. The results show that this country faces an obstacle to reach a rate of growth similar to that of its main trade partners, which cannot be avoided through exchange rate variations. In order to do so, it would be necessary to progress towards more complex links in global value chains and in the meantime, coordinate exchange rate policies as well as policies for foreign trade and capital flow management.