Is There a Brazilian J−Curve?

Guilherme Moura, Pontifical Catholic University of Minas Gerais
Sergio Da Silva, Federal University of Santa Catarina

Abstract

We show that the Marshall−Lerner condition holds for the Brazilian trade balance, and discard a J−curve in the short run. We present these results using impulse−response functions in a variety of (linear and nonlinear) models, including Markov−switching, vector error−correction models.