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Exchange rate versus tariff policies in Brazil: results from MIBRA-USP, an interrregional applied general equilibrium model of the Brazilian economy

Marcelo Theoto Rocha, Joaquim Guilhoto, Patrícia Verônica Pinheiro Sales Lima, Francisco Casimiro Filho and Silvia Helena G. de Miranda

MPRA Paper from University Library of Munich, Germany

Abstract: Since the beginning of the 1990’s Brazil has been experienced an opening process in the economy, which in turn has caused structural changes in the productive structure. In this work it is made an evaluation of the different impacts caused by changes in the exchange rate and in the tariffs over the Brazilian economy and its 5 macro regions. The study is done through the use of an interregional applied general equilibrium model, the MIBRA-USP. The results show that either a devaluation of the exchange rate or an increase in tariffs can cause a rise in the employment level as well as in the economic activity. However, there are differences between the policies, among which it is called attention for the real consumption of the families that decreases with the exchange rate devaluation and increases with higher tariffs.

Keywords: Economic policy; interregional aplied general equilibrium model (search for similar items in EconPapers)
JEL-codes: C67 D57 R15 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (1)

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