IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v16y2024i6p62.html
   My bibliography  Save this article

Dynamic of Brazilian Foreign Trade by Technological Intensity

Author

Listed:
  • Pedro Augusto Machado Neto
  • Elano Ferreira Arruda
  • Antônio Clécio de Brito

Abstract

This paper aims to investigate the long-run relationship between the real exchange rate and the Brazilian trade balance disaggregated by technological intensity classification, i.e., High Tech, Medium-High Tech, Medium Low Tech, and Low Tech, using monthly data from the period of January 2000 to December 2022. To achieve this aim, time-varying cointegration methodology is used, as it is understood that a linear approach is not well suited for developing economies, that face much influence from external events and internal turmoils, which is just the case of Brazil. It was found that, from the 4 sectors, only the low-tech sector has the usually expected signals, that is, a benefit from exchange depreciation, but even for this industry, this positive effect has been diminishing since 2009, due to structural changes in the Brazilian agricultural sector, which accounts for much of the added value in the low-tech goods. The dynamic real exchange rate elasticities for the medium-high and medium-low tech industries oscilated much throughout the time frame of the study, revealing the great influence of external and internal shocks in the change of the trajectory of these elasticities. The high-tech sector presented opposite signals in the estimated elasticities, revealing that exchange rate appreciations benefit it, probably due to its dependency on imported inputs.

Suggested Citation

  • Pedro Augusto Machado Neto & Elano Ferreira Arruda & Antônio Clécio de Brito, 2024. "Dynamic of Brazilian Foreign Trade by Technological Intensity," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 16(6), pages 1-62, June.
    • Handle: RePEc:ibn:ijefaa:v:16:y:2024:i:6:p:62
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijef/article/download/0/0/50177/54303
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijef/article/view/0/50177
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mario Cimoli & Sebastian Fleitas & Gabriel Porcile, 2013. "Technological intensity of the export structure and the real exchange rate," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(4), pages 353-372, June.
    2. Cláudia Maria Sonaglio & Paulo Roberto Scalco & Antonio Carvalho Campos, 2010. "Taxa de Câmbio e a Balança Comercial Brasileira de Manufaturados: Evidências da J-Curve," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 11(3), pages 711-734.
    3. Lal, Madan & Kumar, Satish & Pandey, Dharen Kumar & Rai, Varun Kumar & Lim, Weng Marc, 2023. "Exchange rate volatility and international trade," Journal of Business Research, Elsevier, vol. 167(C).
    4. Karim Barkat & Shaif Jarallah & Mouyad Alsamara, 2024. "Do Exchange Rate Changes Improve the Trade Balance in GCC Countries: Evidence from Nonlinear Panel Cointegration," The International Trade Journal, Taylor & Francis Journals, vol. 38(2), pages 184-200, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Agosin, Manuel & Retamal, Yerko, 2021. "A model of diversification and growth in open developing economies," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 455-470.
    2. Barkat, Karim & Mimouni, Karim & Alsamara, Mouyad & Mrabet, Zouhair, 2024. "Achieving the sustainable development goals in developing countries: The role of remittances and the mediating effect of financial inclusion," International Review of Economics & Finance, Elsevier, vol. 95(C).
    3. Rai, Varun Kumar & Bruna, Maria Giuseppina & Hunjra, Ahmed Imran & Pandey, Dharen Kumar & Lal, Madan, 2024. "COVID-19 literature in Elsevier finance journal ecosystem," Economics Letters, Elsevier, vol. 243(C).
    4. André Roncaglia De Carvalho & - André M. Marques, 2018. "Economic Development And Inflation: A Theoretical And Empirical Analysis," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 41, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Pandey, Dharen Kumar & Hassan, M.Kabir & Kumari, Vineeta & Zaied, Younes Ben & Rai, Varun Kumar, 2024. "Mapping the landscape of FinTech in banking and finance: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 67(PA).
    6. Porcile, Gabriel & Sartorello Spinola, Danilo & Yajima, Giuliano, 2020. "Patterns of growth in structuralist models: The role of the real exchange rate and industrial policy," MERIT Working Papers 2020-027, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Robert A. Blecker, 2022. "New advances and controversies in the framework of balance‐of‐payments‐constrained growth," Journal of Economic Surveys, Wiley Blackwell, vol. 36(2), pages 429-467, April.
    8. Gabriel, Luciano Ferreira & Jayme, Frederico G. & Oreiro, José Luis, 2016. "A North-South Model of Economic Growth, Technological Gap, Structural Change and Real Exchange Rate," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 83-94.
    9. -, 2014. "Latin American Economic Outlook 2015: Education, skills and innovation for development," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37446 edited by Ocde, September.
    10. Jaromír Baxa & Michal Paulus, 2024. "Exchange rate misalignments, growth, and institutions," Empirical Economics, Springer, vol. 67(4), pages 1705-1799, October.
    11. -, 2014. "Perspectivas económicas de América Latina 2015: educación, competencias e innovación para el desarrollo," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37445 edited by Ocde, September.
    12. Porcile, Gabriel & Spinola, Danilo & Yajima, Giuliano, 2021. "Patterns of Growth in Structuralist Models: The Role of PoliticalEconomy," CAFE Working Papers 12, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    13. Alberto Botta, 2014. "The macroeconomics of a financial Dutch disease," Working Papers PKWP1410, Post Keynesian Economics Society (PKES).
    14. Dang Luu Hai, 2021. "Aid for trade and export sophistication in recipient countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(4), pages 530-548, May.
    15. Lim, Weng Marc & Kumar, Satish & Donthu, Naveen, 2024. "How to combine and clean bibliometric data and use bibliometric tools synergistically: Guidelines using metaverse research," Journal of Business Research, Elsevier, vol. 182(C).
    16. Gabriel Porcile & Giuliano Toshiro Yajima, 2019. "New Structuralism and the balance-ofpayments constraint," Review of Keynesian Economics, Edward Elgar Publishing, vol. 7(4), pages 517-536, October.
    17. Palazzo, Gabriel & Rapetti, Martín, 2023. "From macro to micro and macro back: Macroeconomic trade elasticities in a developing economy," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 223-252.
    18. Missio, Fabricio & Araujo, Ricardo Azevedo & Jayme, Frederico G., 2017. "Endogenous elasticities and the impact of the real exchange rate on structural economic dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 67-75.
    19. Naima Mubeen & Dr. Muhammad Abdul Quddus, 2023. "Trade Horizons: A Comprehensive Study of Determinants Shaping Export Diversification in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 446-458.
    20. Frenkel, Roberto & Rapetti, Martin, 2014. "The real exchange rate as a target of macroeconomic policy," MPRA Paper 59335, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:16:y:2024:i:6:p:62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.