Leandro Serino, CAPORDE colleague, has a paper out on the 'Positive natural resource shocks and domestic adjustments in a semi-industrialized economy: Argentina in the 2004-2007 period'
This paper evaluates the domestic adjustment to recent positive external shocks in Argentina's natural resource sectors. Although there is no single, exclusive determinant of Argentina’s fast economic growth in the period 2003-2007, the paper illustrates the favourable contribution of certain economic policies to this outcome.
According to counterfactual simulations performed with a dynamic Computable General Equilibrium (CGE) model especially designed to capture structural features of the Argentine economy, export taxes on natural resource products and Argentina’s competitive exchange rate policy have counteracted Dutch disease adjustments associated the positive terms of trade shock (which may be contractionary in the medium-term if no economic policies are implemented) contributing to productive and export diversification and to bring about output growth.
The analysis also shows that in a context of strong demand impulses spending the income collected with export taxes may not be beneficial for the overall competitiveness of the economy, hence counteracting one of the purposes of the tax policy. This implies, first, that subsidies to producers of wage-goods may be ineffective to control overall price increases, and second, that optimizing the contribution of public investment in infrastructure to improve the competitiveness of the economy requires special attention to the timing of public investment.
Click here to download the full text of the working paper
About the author
Leandro Serino has recently obtained his PhD in Development Studies from the International Institute of Social Studies (ISS) of Erasmus University Rotterdam, The Netherlands. His thesis is entitled: 'Productive diversification in
natural resource abundant countries: limitations, policies and the experience of Argentina in the 2000s'.
He graduated as an economist at the University of Buenos Aires (UBA) and completed a M.Sc. in Development Economics in 2003 (jointly dictated by the ISS, Free University Amsterdam and Wageningen University).
Until recently, he worked at MECON as an adviser to the Secretary of Economic Policy and coordinated a research unit. In addition, Leandro has been consultant for ECLAC Argentina, where he developed the demo of an encyclopedia on development economics (http://www.cepalnacionesunidas.com.ar). He was also involved in teaching and research at the University of General Sarmiento and UBA in Argentina.
At present Leandro is working as a lecturer at the University of General Sarmiento (UNGS) and is participating in a project to update Argentina’s Social Accounting Matrix at the Ministry of Economy and Finances - MECON (Argentina) .