Causalidade entre preços externos e quantidades exportadas de café do Brasil no mercado internacional - 1965/89

Abstract

The main objective of this paper is to determine the relative position of Brazil in the coffee world market. It is tested whether or not Brazil still is a market price setter. For that, Sims causality test was used. The results showed that Brazil is already a price-taker, what is an evidence contradicting the literature in this area. The price policy enforced is 1906 it is the main cause for this change. In addition, the paper discusses of the relationships between the relative position of a country in the international market and the price elasticity of demand in the world market for its products. This part suggests that a country being a price-taker in the world of a given product does not mean, necessarily, that the price-elasticity of external demand for that country's product be perfecty elastic or very large.