publication . Article . 2017

Foreicn Trade of Capital Goods in the United States: A Persistent Deterioration

Goicoechea, Julio;
Open Access English
  • Published: 01 Jan 2017
  • Publisher: Universidad de Huelva
  • Country: Spain
Abstract
Foreign trade of capital goods in the United States from 1994 to 2016 is specifically examined. A lagging performance of exports vis-à-vis imports in terms of magnitude, growth rate as well as price reductions has led to the current deficit. Domestic industrial output is a determining factor in the extent of foreign trade of capital goods. It exposes very large coefficients in the long term for exports (2.89), as well as for imports (4.34). Concerning the effective exchange rate, coefficients are systematically negative and elastic. Hence, a depreciation of the dollar could further deteriorate the external accounts of this sector. The United States trade deficit...
Subjects
free text keywords: Capital Goods, U.S. Trade Deficit, Industrial Output, Effective Exchange Rate, Bienes de capital, Déficit comercial de Estados Unidos, Producción industrial, Tipo de cambio efectivo
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