Exchange rate as economic development device

Vol. 36 No. 4 (2016)

Oct-Dec / 2016
Published October 1, 2016
PDF (Português (Brasil))
PDF (Português (Brasil))

How to Cite

Mattei, Lauro, and Thaís Scaramuzzi. 2016. “Exchange Rate As Economic Development Device”. Brazilian Journal of Political Economy 36 (4):726-47.

Exchange rate as economic development device

Lauro Mattei
Professor do curso de Graduação em Economia e do Programa de Pós-Graduação em Administração, ambos da Universidade Federal de Santa Catarina.
Thaís Scaramuzzi
Mestranda em Economia na Escola de Economia de São Paulo da Fundação Getulio Vargas - EESP-FGV
Brazilian Journal of Political Economy, Vol. 36 No. 4 (2016), Oct-Dec / 2016, Pages 726-747


This article discusses the importance of the exchange rate in the economic development process. After a brief discussion about this issue, the paper presents a historical vision of the exchange policy adopted in Brazil from 1995 until now. This policy took part in the stabilization macroeconomic program implemented in the country since then. Thus, we are discussing the main effects of the economic exchange policy over the industrial sector, highlighting the fact that there are some empirical evidences about the deindustrialization process in Brazil nowadays. What could explain it is the behavior of the share of technological content of the products that compose the international trade of the country. Recently one can observe that there is an expressive growth in the share of the non-industrial products, which could characterize the deindustrialization process in the country.

JEL Classification: O14; O24; O25.

Keywords: Political economy exchange rate deindustrialization