The Impact of Trade Openness on Relative Equipment Prices

Lessons from Latin America

Datos Bibliográficos

ID9728546
AutoresJessica Madariaga (College of Charleston), Anton Bekkerman (0000-0003-0615-1726, Montana State University–Bozeman)
Año2020
Volumen87
Número348
Páginas938-984
Fecha de publicación2020-10-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/ecca.12332
OpenAlexW2998777800
IdiomaEN
Referencias citadas40

Trade can affect relative equipment prices because equipment production is concentrated among a small group of developed countries and many developing nations rely heavily on equipment imports. We construct a new dataset of relative equipment prices for thirteen Latin American countries from 1970 to 2011 in order to help identify which trade channels affect these prices. We show that both the composition of trade and countries’ trade partners matter. Overall, increasing trade intensity in equipment with major equipment‐producing countries is associated with the largest relative price reductions, but there is significant heterogeneity across countries in their responsiveness to changes in trade intensity and trade restrictions

Business · Developing country · Economic growth · Economics · International economics · International trade · Latin Americans · Macroeconomics · Monetary economics · Openness to experience · Order (exchange) · Production (economics) · Relative price · Trade barrier · Economic Growth and Productivity · Finance · Global Trade and Competitiveness · Global trade and economics