How do manufacturing exports react to the real exchange rate and foreign demand? The Chilean case

How do manufacturing exports react to the real exchange rate and to foreign demand? We investigate this question with a Chilean panel data spanning from 2003Q1 to 2016Q4, using publicly available data. In the long term, we find that exports strongly co‐integrate with external demand, whereas not with the level of the real exchange rate. The short‐run elasticities of manufacturing exports differ in size: (a) the elasticity of foreign...