Exports and real exchange rate: The case of Argentine industrial manufactures

This paper analyses the factors determining the evolution of Argentine industrial manufacture export volumes in the 1992–2006 period. Econometric results show the importance of both the level and the stability of the real exchange rate (RER). Nevertheless, the evolution of the GDP of most trade partners has a greater influence than the RER, and it would therefore be important for Latin America—the main destination of this type of products—to maintain the high growth seen in the past few years, and for Argentina, to enhance its international integration into the most dynamic regions in the world, as a longer-run strategy.