Employment dynamics in northern Uruguay border

Uruguay shares a long border with Brazil. There, inhabitants from both sides of the border shop in whichever country they find the cheapest prices. As a consequence of severe changes in the bilateral real exchange rate, the demand moves alternately from side to the other of the border, affecting the...

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Detalhes bibliográficos
Autor: Correa Alsina, Fernando
Formato: artículo
Estado:Versión publicada
Fecha de publicación:2011
País:México
Recursos:Universidad Autónoma de Baja California Sur
Repositorio:Repositorio Institucional de la UABCS
Idioma:español
OAI Identifier:oai:repositorioinstitucional.uabc.mx:20.500.12930/6471
Acesso em linha:https://ref.uabc.mx/ojs/index.php/ref/article/view/116
Access Level:acceso abierto
Palavra-chave:border
consumption
prices
employment
integration.
Social Sciences
Economics
Price
Competition
Consumer
Demand
Economic fluctuations
frontera
consumo
precios
empleo
integración.
Ciencias sociales
Economía
Precio
Competencia
Consumo
Demanda
Las fluctuaciones económicas
Descrição
Resumo:Uruguay shares a long border with Brazil. There, inhabitants from both sides of the border shop in whichever country they find the cheapest prices. As a consequence of severe changes in the bilateral real exchange rate, the demand moves alternately from side to the other of the border, affecting the level of employment in two Uruguayan border provinces. The theoretical model outlined in this article intends to capture the main elements of the analyzed situation. The econometric estimates carried out validate the stated model and show that the labor markets on both sides of the border are not integrated enough to smooth the impact of demand movements.