Transmission of exchange rate variation to Brazilian pulp export prices

Transmission of exchange rate variation to Brazilian pulp export prices

Blog Article

ABSTRACT: The aim of this research was to examine the relationship between exchange rate variations and Brazilian export prices for cellulose, which is defined as the exchange rate pass-through, taking the period Baskets from January 2000 to March 2019 as a reference.The data were collected on the websites of the Ministry of Development, Industry and Foreign Trade - MDIC, the Institute of Applied Economics - IPEA and the Federal Reserve Bank of St.Louis - FRED.Thus, time series instruments were used, especially the Error Correction Vector Model.

Results provided indications that the pass-through degree of exchange rate for cellulose export prices occurred incompletely in the total period and in the second sub-period, and was null in Pedals the first sub-period, representing that depreciation of rate exchange rates did not translate into significant competitiveness gains, as they did not significantly reduced export prices.