TY - JOUR
T1 - Can real exchange rate devaluation improve the trade balance? The 1990-1998 Brazilian case
AU - Gomes, Fábio Augusto Reis
AU - Paz, Lourenço Senne
N1 - Funding Information:
We are grateful for comments from the Editor, Afonso Henriques Borges Ferreira and Cleomar Gomes. Fabio Gomes are grateful for FAPERJ financial support.
PY - 2005/7/15
Y1 - 2005/7/15
N2 - The Brazilian Trade Balance deficit in the 1990s was blamed on the adopted crawling-peg exchange rate regime in which the real exchange rate was supposedly appreciated. The purpose in this letter is to assess this relationship by using VEC-M model to check if Marshall - Lerner condition and J-curve phenomenon hold. The results indicate that the Marshall - Lerner condition holds and the J-curve would be present in the aftermath of a real exchange rate devaluation.
AB - The Brazilian Trade Balance deficit in the 1990s was blamed on the adopted crawling-peg exchange rate regime in which the real exchange rate was supposedly appreciated. The purpose in this letter is to assess this relationship by using VEC-M model to check if Marshall - Lerner condition and J-curve phenomenon hold. The results indicate that the Marshall - Lerner condition holds and the J-curve would be present in the aftermath of a real exchange rate devaluation.
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U2 - 10.1080/13504850500076908
DO - 10.1080/13504850500076908
M3 - Article
AN - SCOPUS:23144438979
SN - 1350-4851
VL - 12
SP - 525
EP - 528
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 9
ER -