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Fluctuaciones del Dólar, Precio del Cobre y Términos de Intercambio

Author

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  • Jose De Gregorio
  • Hermann González
  • Felipe Jaque

Abstract

This paper examines the determinants of the copper price and the Chilean terms of trade, with special focus on the industrialized economies' real exchange rates. It also estimates the effects of world economic activity on the copper price and terms of trade. Empirical results show that, in the long run, a 10% real depreciation of the US dollar yields an 18% increase in the real copper price and a 12% increase in the terms of trade. Moreover, a 1% increase in world economic growth, generates increases of 0.14% in the real copper price and 0.24% in the terms of trade.

Suggested Citation

  • Jose De Gregorio & Hermann González & Felipe Jaque, 2005. "Fluctuaciones del Dólar, Precio del Cobre y Términos de Intercambio," Working Papers Central Bank of Chile 310, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:310
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_310.pdf
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    References listed on IDEAS

    as
    1. Pesaran, M. H. & Shin, Y. & Smith, R. J., 1996. "Testing for the 'Existence of a Long-run Relationship'," Cambridge Working Papers in Economics 9622, Faculty of Economics, University of Cambridge.
    2. repec:crs:wpaper:9645 is not listed on IDEAS
    3. Eduardo Borensztein & Carmen M. Reinhart, 1994. "The Macroeconomic Determinants of Commodity Prices," IMF Staff Papers, Palgrave Macmillan, vol. 41(2), pages 236-261, June.
    4. Strøm,Steinar (ed.), 1999. "Econometrics and Economic Theory in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521633659, September.
    5. Eduardo Borensztein & Carmen M. Reinhart, 1994. "The Macroeconomic Determinants of Commodity Prices," IMF Staff Papers, Palgrave Macmillan, vol. 41(2), pages 236-261, June.
    6. Rudiger Dornbusch, 1985. "Policy and Performance Links between LDC Debtors and Industrial Nations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 16(2), pages 303-368.
    7. Strøm,Steinar (ed.), 1999. "Econometrics and Economic Theory in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521633239, September.
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    Cited by:

    1. Werner Kristjanpoller R. & Alejandro Sierra C., 2014. "Relationship between the dollar, the price of copper and the IPSA indifferent time scales: An approach through Wavelet," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 17(3), pages 56-85, December.

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