Date Added: Mar 2011
The authors evaluate whether the presence of China in world trade is ultimately beneficial or whether it is a threat to Brazil. Using a gravitational model and a panel data method, they find that the Chinese exports to countries other than Brazil are not hurting the Brazilian exports, although the exports of Brazilian manufactured goods have been displaced by commodities as a result of its commerce with China. From 1990 to 2007 the growth of China's GDP averaged 10.57 percent, and its GDP per head grew 8.18 percent. This was in part caused by the increasing importance of foreign trade for the Chinese economy. Here, they will focus on the effects of this trade expansion on the Brazilian external sector.