Real exchange rate, financial support and exports in Brazil: estimation of the sector export equation with implicit exchange rates

Débora Freire (), Marco Flávio Resende and Gustavo Britto

Brazilian Journal of Political Economy, 2019, vol. 39, issue 4, 591-613

Abstract: This paper assesses the relevance of export incentives in Brazil from 2004 and 2011. Departing from the hypothesis that exports profitability and incentives depend not only on the level of the real exchange rate and world income, but also on potential financial income obtained from such export incentives, the study calculates implicit exchange rates by sectors. The objective is to test the hypothesis that, together with the traditional variables of an export function, it is the adjusted implicit exchange rate, not the real exchange rate, the relevant variable to explain the level of sectoral exports in Brazil. Hence, two export equations are estimated using panel data, each one contemplating one of the available exchange rates. The results show that the implicit exchange rate is indeed relevant to explain exports and stress the importance of exports incentives. Classificação JEL: E60; F13; H20.

Keywords: Export support policies; implicit real exchange rate; exports; panel data (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://centrodeeconomiapolitica.org.br/repojs/ind ... nal/article/view/2/1 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:39:y:2019:i:4:p:591-613:id:2

Access Statistics for this article

More articles in Brazilian Journal of Political Economy from Center of Political Economy
Bibliographic data for series maintained by Brazilian Journal of Political Economy (Brazil) ().