Determinants of Brazilian agribusiness exports to China

Gilberto Fraga and Waldemiro Silva Neto ()
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Waldemiro Silva Neto: Department of Economics of Federal University of Goias

Economics Bulletin, 2017, vol. 37, issue 1, 94-106

Abstract: Brazil is a major global agribusiness trader, a leading producer and exporter of grain, meat and sugar while China is notable as a crucial trading partner for Brazilian agribusiness. With these aspects in mind, this article sets out to analyze the trade flow determinants of agribusiness from Brazilian states to China. To do so, foreign income and real exchange rate variables were constructed, using state-specific trade weights. The estimates were calculated using static and dynamic panel data. The results suggest that exports from Brazilian states to China are elastic in terms of foreign income and inelastic in terms of the variable production level of the states. Price (exchange and international price) did not rank as a determinant.

Keywords: International trade; income; international price (search for similar items in EconPapers)
JEL-codes: F1 Q1 (search for similar items in EconPapers)
Date: 2017-01-13
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