EXCHANGE RATE, EXPORTS AND TRADE BALANCE IN BRAZIL: AN ASSESSMENT OF 1999-2006 PERIOD

Abstract

The paper aims at analyzing the behavior of the trade balance in Brazil in 1999-2006; it seeks to understand the main factors that positively contributed to evolution of the balance, such as the world economic growth and the growth of both commodities price and demand, compensating the negative effect derived from the exchange rate appreciation trend. More specifically, the paper focuses on the exports performance in the context of exchange rate appreciation, and for this purpose some themes are particularly analyzed, such as exports performance by product class, intra-firm trade, Dutch disease and “desindustrialization”.