Coffee exports and industrialization in Brazil

We investigate the dynamic relationship between coffee exports and machinery imports in Brazil from 1869 to 1939. Our tests reveal cointegration and bidirectional causality in the temporal sense. This evidence suggests that foreign exchange real revenues from coffee exports were important for the on...

Full description

Saved in:
Bibliographic Details
Published inApplied economics letters Vol. 26; no. 9; pp. 712 - 716
Main Authors Barros, Fernando, Ferreira, Alex Luiz, Marcondes, Renato Leite, Prioste, Ricardo Raoni Werlang
Format Journal Article
LanguageEnglish
Published London Routledge 21.05.2019
Taylor & Francis LLC
Subjects
Bear markets
Bidirectionality
Bull markets
Causality
Coffee
Economic analysis
Economic theory
Economics
Exports
Foreign exchange
Growth
Imports
Industrial development
Industrialization
Brazil
Online AccessGet full text

Cover

More Information
Summary:We investigate the dynamic relationship between coffee exports and machinery imports in Brazil from 1869 to 1939. Our tests reveal cointegration and bidirectional causality in the temporal sense. This evidence suggests that foreign exchange real revenues from coffee exports were important for the onset of industrialization, as machinery imports proxy for real investment demand. Capital growth, in turn, also helped to boost the country's exports.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2018.1489498