Abstract

In this article we built external orientation indicators for the Brazilian manufacturing
industry. These indicators allow us to better understand the changes on trade orientation
during the 1990s and the effect of an external shock, considering both the revenue (external
sales and domestic competition with imports) and the cost (imported inputs) channels.
The study shows that the net external orientation coefficient for the manufacturing sector
as a whole dropped by 11.3% between 1989 and 1998, diminishing the positive effect that
currency devaluation would have on the manufacturing sector.

JEL Classification: F14; F60.