Abstract We analyze the channels through which the Exchange rate affects final consumer prices. We compare advanced countries with one emerging economy, Brazil, to determine the corresponding exchange rate pass-through and its channels. A key aspect to the exchange rate pass-through is the relative importance of tradables in the consumption basket as well as the share of imported inputs. Since non-tradables are usually cheaper in developing economies, the share of non-tradeables is smaller in theses countries. We illustrate this scenario using data from Brazil vis-a-vis a group of advanced economies.

Os fluxos de troca comerciais envolvendo transações brasileiras são bastante dinâmicos e de baixa duração. A maioria das relações de importações do país dura de um a dois anos somente. Neste trabalho, estudou-se empiricamente a duração das importações no Brasil entre 1995 e 2012, para dados desagregados. As taxas de sobrevivência aumentam na medida em que os valores iniciais de compra aumentam, sendo este aumento maior para produtos diferenciados do que para os homogêneos, corroborando a hipótese de que a incerteza inicial das trocas comerciais parece ser relevante. Além disso, as relações com países avançados tendem a durar mais e também esse é o caso para países pertencentes ao Mercosul.

Trade flows to Brazil are dynamic and short-lasting. The vast majority of flows lasts from one to two years only. In this work, we study empirically the duration of trade flows to Brazil between 1995 and 2012, using disaggregated data. Our results suggest that the survival rates increase with the initial value of imports, increasing more for differentiated products, which corroborates the hypothesis that the survival is related to uncertainty at the moment of the initial purchase. Moreover, trade flows with advanced countries last longer, as well as those trade flows coming from countries belonging to Mercosul (a Preferential Trade Agreement).