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The effects of shocks on the dismissal in the electro-electronics sector: evidence from Brazil

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Listed:
  • Renan Mitsuo Ueda
  • Adriano Mendonça Souza
  • Wesley Vieira Da Silva
  • Claudimar Pereira Da Veiga
  • Francisca Mendonça Souza

Abstract

This research aims to investigate the short and long-term relationship between the number of dismissals in the Brazilian electro-electronics sector and the macroeconomic variables: gross domestic product, Brazil's total exports, monthly average of the dollar quotation and the broad national consumer index, from May 2003 to September 2018. To verify the interrelationship between the variables, we used the vector autoregressive (VAR) models and vector error correction (VEC). The analysis of the impulse response function and the variance decomposition helped to understand the dynamics of the electro-electronics industry, showing that in the long-term, part of the variance of the sector's dismissal (28.64%) is explained by the broad national consumer index. Abrupt changes in the analysed macroeconomic variables cause fluctuations in the number of dismissals in the Brazilian electro-electronic sector for approximately four to seven months.

Suggested Citation

  • Renan Mitsuo Ueda & Adriano Mendonça Souza & Wesley Vieira Da Silva & Claudimar Pereira Da Veiga & Francisca Mendonça Souza, 2022. "The effects of shocks on the dismissal in the electro-electronics sector: evidence from Brazil," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 23(4), pages 527-548.
    • Handle: RePEc:ids:ijecbr:v:23:y:2022:i:4:p:527-548
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