Article(electronic)January 9, 2020

The Impact of Trade Openness on Relative Equipment Prices: Lessons from Latin America

In: Economica, Volume 87, Issue 348, p. 938-984

Checking availability at your location

Abstract

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.

Languages

English

Publisher

Wiley

ISSN: 1468-0335

DOI

10.1111/ecca.12332

Report Issue

If you have problems with the access to a found title, you can use this form to contact us. You can also use this form to write to us if you have noticed any errors in the title display.