Economic performance analysis of the Industrial District of Manaus (AM) using vectorial autoregressive modeling (VAR)

Abstract

The objective of this research was to examine the economic performance determinants of the Industrial District of Manaus (PIM) using vector autoregressive modeling (VAR). Specifically, we identified the main economic variables that explain the performance of PIM, formulating a model vector autoregressive (VAR), based on Johansen and Juselius (1990), explaining the PIM economic performance and investigating the various relationships between economic variables identified by impulse-response function. It was concluded that PIM sales was positively affected by income and prices of substitute foreign goods. The impact on domestic prices and the exchange rate was negative on PIM sales, results in line with economic theory.