Effects of interest and exchange rate policies on Brazilian exports

Sonaglio, Cláudia Maria; Campos, Antônio Carvalho; Braga, Marcelo José

doi:10.1016/j.econ.2016.01.002

Cited by 15 publications

(8 citation statements)

References 15 publications

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“…Another study by Sonaglio et al (2016) deduced that depreciation of real exchange rate increases exports of manufactured goods because it encourages investments and fuels competitiveness in the country, noting its overall positive effect on the country's industrial sector.…”

Section: Brazilmentioning

confidence: 99%

An Empirical Analysis of the Impact of Exchange

2019

JESD

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This study investigates the relationship between exchange rate and agricultural activity based on data collected between 1999 and 2016. The study found a significant positive relationship between exchange rate between exchange rates and activity in the agricultural sector using real and nominal values. A higher or weaker exchange rate correlated with similarly with greater activity within the sector. This study therefore recommended that the government should take advantage of weaker exchange rates that make Nigerian agricultural produce cheaper and increase investment in the sector to reap the benefits as the agricultural sector can potential be a source of local and foreign income. This can be a major step in reviving the sector. AcknowledgementI would like to extend my gratitude to SEGi College and the University of Greenwich for access to tools and library in conducting this research and for the opportunity to conduct a study on a topic close to my heart. I would also like to express a special thank you to my supervisor Mr. Nizar Ali Khan and my lecturer Mr. Cai Yunchao for their guidance during this study.

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Section: Brazilmentioning

confidence: 99%

An Empirical Analysis of the Impact of Exchange

2019

JESD

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“…Using a structuralist model, Sonaglio, Campos and Braga (2016) investigate the effects of changes in the monetary (interest rate) and exchange rate policy as well as the composition of total exports on the Brazilian aggregate output growth [61]. Result shows that interest have a negative impact and while exchange rate reveals a positive and significant relationship.…”

Section: Review Of the Empirical Literaturementioning

confidence: 99%

Macroeconomic Analysis of Interest Rate and Economic Growth in Nigeria: A Time Series Approach

Idris¹

2019

IJFBR

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This study examines the impact of interest rate on economic growth in Nigeria using annual time series data spanning 1980 to 2017. This phenomenon is particularly interesting from a theoretical standpoint as well as for the understanding of financial market mechanisms. The Vector Autoregression (VAR) model and the Granger causality test are employed to estimate the model coefficients and measure the causal relationship among the concerned variables. From the VAR-based impulse response function and its corresponding variance decomposition estimates, result shows the existence of negative relationship between interest rate and economic growth in Nigeria. In addition, the Granger causality test indicates the presence of bi-directional causal relationship between interest rate and economic growth. Consequently, monetary authorities should designed and implement interest rate policies that enhance investment and take into cognisance other elements that retard investment progression. To attain the desired growth level in Nigeria, monetary authorities and policy makers should adopt policy measures that are growth oriented and have the potentials to accelerate the economy to higher productivity and sustainable economic growth.

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“…These numbers depict the challenges of the rapid growth in China faced by Brazil and several Latin American economies, particularly as the growth in global demand for imports from China means a loss of export markets for local producers (Jenkins and Barbosa, 2012;Hiratuka and Sarti, 2017). The debate abounds in Brazil about relative de-industrialization, which is mainly attributed to the maintenance of the overvalued Brazilian currency during the boom phase of the commodity price cycle (Oreiro et al, 2014;Bresser-Pereira, 2013;Sonaglio et al, 2016;Jenkins, 2015). Despite this debate, evidence of sectoral reallocation in the Brazilian economy from the commodity sector to the noncommodity sector is difficult to find.…”

Section: Stylized Factsmentioning

confidence: 99%

Chinese Resource Demand or Commodity Price Shocks: Macroeconomic Effects For an Emerging Market Economy

Fry-McKibbin

Souza

2018

SSRN Journal

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This paper empirically addresses the hypothesis that of the external commodity based sector, Chinese resource demand is the most important driver of emerging market economy business cycles using Brazil as a representative case. Using a structural VAR to examine the effects of Chinese resource demand, world commodity prices and foreign output on domestic macroeconomic variables, we show that shocks to Chinese demand induce an expansion in Brazilian resource exports, the non-tradeable primary commodity sector and other domestic activity. Commodity price shocks are less favorable than Chinese resource demand shocks. Our findings identify the important role of the interest rate in amplifying the real effects of the commodity sector boom, in contrast to the role of the interest rate in developed countries. By incorporating Chinese resource demand in addition to commodity prices, commodity prices play a smaller role in explaining the variance of domestic output than found in previous literature.

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Effects of interest and exchange rate policies on Brazilian exports

Cited by 15 publications

References 15 publications

An Empirical Analysis of the Impact of Exchange

An Empirical Analysis of the Impact of Exchange

Macroeconomic Analysis of Interest Rate and Economic Growth in Nigeria: A Time Series Approach

Chinese Resource Demand or Commodity Price Shocks: Macroeconomic Effects For an Emerging Market Economy

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