_Source:_ COMTRADE and own calculations.

**Even if structural transformation is low, Argentina’s aggregate exports have shown a considerable dynamism over the past 15 years.** The country has performed better compared to world and regional comparators. Argentina recovered its world trade share during the 1990s, a period associated with macroeconomic stabilization, trade liberalization, deregulation, large capital inflows, real exchange rate appreciation and fast GDP and productivity growth until 1998. From 1992 to 2007, Argentina’s export growth was above the rate of growth of world trade (Table 7).

**Table 7. Export Dynamics in Argentina vs. Comparators (SITC 3)**

|**Av**|**erage Annua**<br>|**l Growth Ra**<br>|**te**<br>|
|---|---|---|---|
||**1992-99**|**2000-07**|**1992-07**|
|World|6.7|11.3|9.0|
|Argentina|10.5|11.6|11.0|
|Brazil|4.4|16.9|10.6|
|Chile|7.9|21.8|14.8|

_Source:_ Comtrade and own calculations.

**Mining products have grown fast in terms of exports** (Table 8). This reflects the fact that mining has been one of the sectors that has benefited the most from the devaluation, and has attracted new foreign investment. Moreover, an amendment to the mining law passed in 2001 set out new fiscal stability rules and exempted the sector from export taxes. Some manufactures good appear in the list too (sound recorders and steam turbines), together with dairy and primary products. The least dynamic products are mainly minerals and industrial manufacturing (furniture on top), further confirming that manufacturing production is mainly focused on domestic demand.

**Table 8. Least and Most Dynamic Export Products in 2004-07 (STIC3 3 digit)**

|**Product Name**|**Share in**<br>**total**<br>**exports**|**Average**<br>**annual**<br>**growth 04-07 **|**Product Name**|**Share in**<br>**total**<br>**exports**|**Average**<br>**annual**<br>**growth 04-07**|
|---|---|---|---|---|---|
|Non ferrous base metal waste|0,00|-30,28|Iron ore/concentrates|0.00|31489.85|
|Furniture/stuff furnishing|0,18|-14,44|Base metal ores|0.02|3975.26|
|Rolledplated m-steel|0,18|-12,07|Vegtext fibre|0.00|490.84|
|Mach-tools remove material|0,01|-10,90|Iron/steel railwaymaterial|0.00|361.91|
|Petrol./bitum. oil,crude|2,36|-10,23|Butter and cheese|0.09|330.25|
|Photographic equipment|0,00|-9,90|Sound recorders|0.00|327.09|
|Sulphur/unroastdpyrites|0,00|-9,58|Steam/vapor turbines|0.00|293.82|
|Printingindustrymachinery|0,01|-5,49|Flour/meal wheat|0.46|283.82|
|Synthetic spinningfibre|0,01|-4,63|Coke/semi-coke|0.00|257.10|
|Polyacetals/polyesters|0,14|-3,31|Plastic waste/scrap|0.05|257.00|

_Source:_ Comtrade and own calculations.

_Note_ : Although most of the listed products may not constitute a large share of exports, above average growth in these products may mean they eventually become an important source of a country’s export earnings. In addition, the specific production characteristics of dynamic products could also convey important information on export opportunities in relation to other similar goods.

**Overall Argentina has increased exported products with almost all partners, which would explain an increase in the number of products exported and consequently an increase of product diversification** (Figure 13).<sup>9</sup> Regarding existing important export markets (right graph), Argentina has been exporting at an even path to Japan, while the diversification of exports has decreased to partners

> 9 For the methodology, please refer to Amurgo-Pacheco, A. and Pierola, M.D. (2008), Patterns of Export Diversification in Developing Countries: Intensive and Extensive Margins, PRWP 4473, World Bank.

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