Performance of Brazilian Cotton after the Economic Opening

This work aims at studying the performance of the Brazilian production of cotton after the economical opening. The results show that, after 1989, there was an expansion of the entrance of cotton in the country. In the 1990s, it can be observed a change in the production space of the fiber in Brazil, via increase of the production at the savannah region. Later, it was also verified a greater governmental intervention in this crop, through the expansion of the rural credit & the minimum price policy. To estimate the export supply functions, a VAR methodology was used, a theoretical model in which the export acts as a response to the surplus of the local market. It was estimated a model for the period 1989/96 & another for 1996/03; the last one concerns the time of greater governmental intervention. For both periods the local income, trade relations & the exchange rate were significant, but in the first period they had a short contemporary influence on the cotton export. However, in the second period, the effects of the breaks on the explainable variables appeared to be more persistent. Tables, Graphs, References. Adapted from the source document.