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Fostering Argentina’s integration into the world economy

Author

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  • Robert Grundke
  • Jens Matthias Arnold

Abstract

Ever since the early 20th century, Argentina has failed to fully reap the benefits that integrating into the world economy can offer. With exports and imports only accounting for less than 30% of GDP, Argentina is significantly less integrated into the world economy than other emerging market economies. This reflects several decades of inward oriented policies including a strategy of industrialisation through import substitution. Trading little, Argentina has also remained on the side-lines of global value chains, all of which represents significant lost opportunities for growth and well-being. This paper, based on a chapter in the 2019 Economic Survey of Argentina, analyses the potential benefits and distributional effects of a stronger integration into the global economy. It also discusses policy options for opening up and for accompanying policies to ease the transition towards a more open economy. This Working Paper relates to the 2019 OECD Economic Survey of Argentina http://www.oecd.org/economy/argentina-economic-snapshot/

Suggested Citation

  • Robert Grundke & Jens Matthias Arnold, 2019. "Fostering Argentina’s integration into the world economy," OECD Economics Department Working Papers 1572, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1572-en
    DOI: 10.1787/7ed95b2b-en
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    More about this item

    Keywords

    adjustment costs; Argentina; domestic distortions; empirical trade analysis; factor reallocation; International trade; trade openess;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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