Nilmen Salles

The objective of this research work is to analyze the importance of real exchange rates in the economies of Brazil and Argentina, especially with regard to their effects on the imports of the two countries. Since there is no agreement with regard to the most apropriate, three alternative indicators for exchange rates were tested. Stationarity and cointegration tests were undertaken as well as an impulse response analysis is done. Variables were find to be non-stationary and cointegrated. In gereneral imports showed negatives signs and considerable variation percentages in replies to real depreciation, even though indicators of exchange rates showed different results. It has also been shown that the effects of exchange rates are not eliminated in a short period of time. With regard to commercial flow, exchange rates may create non-negligible effects on the economy of both countries.