GDP, trade balance and exchange rate: possible solution to the economic crisis?

One of the most important components of effective demand, for an open national economy, revolves around exports, which induce endogenous changes in the level of aggregate consumption and investment. This paper proposes a simultaneous regression model that, based on economic theory, allows establishi...

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Detalles Bibliográficos
Autores: Cortés Fregoso, José Héctor, Domínguez González, José Antonio
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2010
País:México
Institución:UNIVERSIDAD DE GUADALAJARA
Repositorio:Expresión Económica
Idioma:español
OAI Identifier:oai:ojs2.148.202.248.171:article/654
Acceso en línea:https://expresioneconomica.cucea.udg.mx/index.php/eera/article/view/654
Access Level:acceso abierto
Palabra clave:GDP
balance of trade
exchange rate
simultaneous models
identification
financial crisis
PIB
balanza comercial
tipo de cambio
modelos simultáneos
Descripción
Sumario:One of the most important components of effective demand, for an open national economy, revolves around exports, which induce endogenous changes in the level of aggregate consumption and investment. This paper proposes a simultaneous regression model that, based on economic theory, allows establishing the relationship between the gross domestic product (GDP), the trade balance (CB) and the nominal exchange rate (ER) for different periods, sometimes considering some variables as explanatory and others as dependent, that is, taking into consideration the problems of multi-equation models.In this way, this paper aims to develop a simultaneous structure model that can be useful for forecasting the main macroeconomic variables, especially in the context of an open economy and its relationship with the international economy. The fundamental question has to do with a possible economic policy alternative to boost the recovery of the Mexican economy. In other words, the results obtained from the application of this model are intended to facilitate possible proposals that could be useful to alleviate in some way the effects of the current financial crisis.