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International Competitiveness, Exchange Rate And Aircraft Trade Of Air Vehicles: 1997-2016

Author

Listed:
  • Patrick Leite Santos

    (Universidade Federal de Uberlândia)

  • Luís Abel da Silva Filho

    (Universidade Regional do Cariri (URCA))

Abstract

This article aims to investigate the competitiveness of the air vehicle sector of the State of São Paulo from 1997 to 2016; and how the exchange rate has impacted business relationships. In order to do so, three indices were constructed and two econometric tests were applied to the time series: the Index of Relative Advantages in Exports (IVRE), the revealed competitiveness index (ICRV), the regional guidance index (IOR); and, the Johansen cointegration tests and the Granger causation test. The results show evidence that the industry was able to establish itself in the world market with advantages in IVRE and ICRV, having as main partner, verified from the IOR, the European Union (EU). Regarding the exchange rate, the tests showed that there is no long-term relationship between the exports of air vehicles and the effective real exchange rate.

Suggested Citation

  • Patrick Leite Santos & Luís Abel da Silva Filho, 2018. "International Competitiveness, Exchange Rate And Aircraft Trade Of Air Vehicles: 1997-2016," Revista de Economia Mackenzie (REM), Mackenzie Presbyterian University, Social and Applied Sciences Center, vol. 15(1), pages 9-33, January-J.
    • Handle: RePEc:aft:journl:v:15:1:2018:jan:jun:p:9-33
    DOI: -
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