Exchange rate regime and structural changes in the Brazilian manufacturing industry

Abstract

This article proposes an analysis of the relationship between exchange rate regime and evolution of the Brazilian manufacturing industry during the period 1980-2008. Its main purpose is to detect the direction of the structural changes imposed by the new form of international ion consolidated throughout the 1990s. The work also provides new empirical evidence regarding the assumptions of deindustrialization and "Dutch disease", which mark the current debate on the effects of the appreciation of real exchange rate in the Brazilian economy.

JEL Classification: F31; L16; L17; L25.