Can real exchange rate devaluation improve the trade balance? The 1990-1998 Brazilian case
Abstract
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.Download Info
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Bibliographic Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.
Volume (Year): 12 (2005)
Issue (Month): 9 ()
Pages: 525-528
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