This work empirically analyses the impacts that changes in exchange rates had on export prices in Brazil, by sector, from 1995 to 2005. The main theoretical references take into account microeconomic aspects of international trade, such as market structure and the role of transnational corporations. Pass-through coefficients were calculated, and factor analysis techniques were also applied with the aim of finding sector specific patterns. The findings suggest that the exchange rate pass-through to export prices of less complex goods, such as commodities, tends to be higher. Regarding more complex goods, for example, automobiles and machinery, the results indicate reduced pass-through, notwithstanding the high pass-through to prices of electronics and other vehicles.
Exchange rate; Pass-through; Export prices
