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Câmbio real, poupança doméstica e poupança externa: análise teórica e evidências empíricas [Real exchange rate, domestic savings and external savings: theoretical analysis and empirical evidence]

Author

Listed:
  • Marcos Rocha

    (PUC-SP)

  • Paulo Gala

    (EESP-FGV)

Abstract

This paper provides theoretical and empirical elements to analyze the relation between real exchange rates and domestic savings. We show from a theoretical perspective how a competitive exchange rate may stimulate domestic savings by avoiding consumption booms based on currency overvaluation and by increasing profits in the tradable sector. Our baseline model shows from a short run perspective how a competitive exchange rate may stimulate investment, exports, profits and thus domestic savings. We also present econometric evidence based on a panel with developing countries which shows a robust connection between real exchange rates and domestic savings as a share of GDP.

Suggested Citation

  • Marcos Rocha & Paulo Gala, 2011. "Câmbio real, poupança doméstica e poupança externa: análise teórica e evidências empíricas [Real exchange rate, domestic savings and external savings: theoretical analysis and empirical evidence]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 21(3), pages 351-367, September.
    • Handle: RePEc:nov:artigo:v:21:y:2011:i:3:p:351-367
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    References listed on IDEAS

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    More about this item

    Keywords

    real exchange rate; savings; investment and economic development; savings displacement;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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