STRUCTURAL CHANGE IN THE BRAZILIAN DEMAND FOR IMPORTS: A regime switching approach
AbstractThe aim of the present paper is to apply a Markov Switching model to check the characteristics of the Brazilian demand for imports equation based on annual data from 1947 to 2002 and on quarterly data from 1978:I to 2002:II. The results show that this model satisfactorily describes the structural and conjunctural characteristics of Brazilian foreign trade in the last decades. The longterm analysis, based on annual data, allowed for the identification of cyclic periods of trade closure and openness that coincide with the historical events of Brazilian economy. The conjunctural analysis, based on quarterly data, indicates different elasticities for a regime with rise and fall in imports
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 346.
Date of creation: 11 Aug 2004
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Markov Switching; Error Correction Mechanism; Demand for Imports; Trade Elasticities; Co-integration.;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- C - Mathematical and Quantitative Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-10-30 (All new papers)
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