| The objective of this paper was to analyze whether there is a long-run relationship between Brazilian automobile exports and the real effective exchange rate in Brazil in the 1990-2005 period. The methodology used was cointegration analysis, in particular, the Johansen procedure. Results showed no cointegration between automobile exports and the real effective exchange rate in the period, even when the sample was split to capture distinct exchange rate regimes. The main conclusion is that Brazilian automobile exports in the period are better explained by other factors, such as firm strategies, institutional factors and sector-specific changes. |
