O impacto da redução do custo do Brasil sobre a defasagem cambial

The aim of this paper is to evaluate the impact of a 'Brazil cost· reduction on exchange rate desequilibrium. Brazil cost here is intended to be any kind of productive ineficiency. Our main finding is that in general equilibrium it is not necessary true that a cost reduction implies exchange rate delay reduction. Productive gaíns in tradeable goods reduce exchange rate delay, in non-tradeable goods increase and in both industry it depends on demand adjustment. If the tradeable goods demand income elasticity is hígher than non-treadeable one exechange rate delay is reduced. In particular, when 'Brazil cosf reduction means port service ineficiency reduction, nothing could be stated. Before answering the question that gave occasion for this paper, the notions of real exchange rate. equilibriurn real exchange rate and exchange rate valorization are presented.