IDEAS home Printed from https://ideas.repec.org/a/bla/rgscpp/v14y2022i6p292-307.html
   My bibliography  Save this article

The potential impact of products seized on the western border of Paraná on the Brazilian economy

Author

Listed:
  • Carlos Alberto Goncalves
  • Ricardo Luis Lopes
  • Cristiano Stamm

Abstract

This paper analyzes the illegal trade practices carried out in the Paraná western border region and its impacts on each federative unit (FU) regarding gross output (GO), taxes, labor income, and employment. An interregional input–output system was used for this analysis. The results show that the negative impact on the national economy, if the police/Federal Revenue had not seized any product, would be twice as large as the amount seized, exceeding one billion reais in the 2017 national GO. Thus, considering the volume seized, cigarettes would have been the product that would harm the Brazilian economy most if the seizures had not occurred, and the state most negatively impacted would be Rio Grande do Sul. However, in terms of production, taxes, and income multipliers, the most harmful products for the Brazilian economy would have been electronic and computer products, and the FU most impacted by the entry of these products would have been São Paulo. Este artículo analiza las prácticas ilegales de comercio en la región fronteriza del oeste de Paraná y sus impactos en cada unidad federal (UF) con respecto a la producción bruta (PB), los impuestos, los ingresos laborales y el empleo. Para el análisis se utilizó un sistema interregional de input‐output. Los resultados muestran que el impacto negativo en la economía nacional, si la policía/recaudación federal no hubiera incautado ningún producto, sería el doble de la cantidad incautada, superando los mil millones de reales en la PB nacional de 2017. De acuerdo con el volumen incautado, los cigarrillos habrían sido el producto que más hubiera perjudicado a la economía brasileña si no se hubieran producido las incautaciones, y el estado más perjudicado sería Rio Grande do Sul. Sin embargo, en términos de producción, impuestos y multiplicadores de renta, los productos más perjudiciales para la economía brasileña hubieran sido los productos electrónicos e informáticos, y la UF más impactada por la entrada de estos productos hubiera sido São Paulo. 本稿は、ブラジルのパラナ州西部の国境地域で行われている違法の取引慣行と、その連邦行政単位(federative unit:FU)における総生産(gross output:GO)、税金、労働所得および雇用に関する影響を分析する。分析には地域間産業連関システムを用いた。結果から、警察/連邦歳入庁が商品を押収していない場合、国民経済へのマイナスの影響は、その押収量の2倍になり、2017年の国民総生産では10億レアルを超えることが示された。さらに、押収量を考慮に入れると、押収が行われていなかった場合にブラジル経済に最も損害を与える商品は紙巻タバコであり、最も影響を大きく受ける州はリオグランデ・ド・スル州であった。しかし、生産、税金、所得乗数の面では、ブラジル経済にとって最も有害な商品は電子機器及びコンピューターであり、これらの商品の参入によって最も影響を受けるであろうFUはサンパウロであった。

Suggested Citation

  • Carlos Alberto Goncalves & Ricardo Luis Lopes & Cristiano Stamm, 2022. "The potential impact of products seized on the western border of Paraná on the Brazilian economy," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(6), pages 292-307, December.
  • Handle: RePEc:bla:rgscpp:v:14:y:2022:i:6:p:292-307
    DOI: 10.1111/rsp3.12457
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rsp3.12457
    Download Restriction: no

    File URL: https://libkey.io/10.1111/rsp3.12457?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Turrini, Alessandro & van Ypersele, Tanguy, 2010. "Traders, courts, and the border effect puzzle," Regional Science and Urban Economics, Elsevier, vol. 40(2-3), pages 81-91, May.
    2. Parsley, David C. & Wei, Shang-Jin, 2001. "Explaining the border effect: the role of exchange rate variability, shipping costs, and geography," Journal of International Economics, Elsevier, vol. 55(1), pages 87-105, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Demet Yilmazkuday & Hakan Yilmazkuday, 2017. "The role of direct flights in trade costs," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 249-270, May.
    2. Ariel Burstein & Martin Eichenbaum & Sergio Rebelo, 2005. "Large Devaluations and the Real Exchange Rate," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 742-784, August.
    3. Franses, Ph.H.B.F. & van Dijk, D.J.C., 2002. "A simple test for PPP among traded goods," Econometric Institute Research Papers EI 2002-02, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    4. Waights, Sevrin, 2018. "Does the law of one price hold for hedonic prices?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(15), pages 3299-3317.
    5. Chen, Natalie, 2004. "The behaviour of relative prices in the European Union: A sectoral analysis," European Economic Review, Elsevier, vol. 48(6), pages 1257-1286, December.
    6. Pauline Grosjean & Claudia Senik, 2011. "Democracy, Market Liberalization, and Political Preferences," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 365-381, February.
    7. Rumler, Fabio & Reiff, Adam, 2014. "Within- and cross-country price dispersion in the euro area," Working Paper Series 1742, European Central Bank.
    8. Alam, Md. Rafayet & Morshed, A.K.M. Mahbub, 2021. "Price dispersion across U.S. cities: The role of Walmart," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 227-237.
    9. D. A. Izotov & K. I. Tochkov, 2020. "Interaction of the Russian Far East and Asia-Pacific Countries: Assessment of Institutional and Tariff Barriers to Trade," Regional Research of Russia, Springer, vol. 10(2), pages 182-193, April.
    10. Bruno Versailles, 2012. "Market Integration and Border Effects in Eastern Africa," Economics Series Working Papers WPS/2012-01, University of Oxford, Department of Economics.
    11. Hakan Yilmazkuday, 2012. "How wide is the border across U.S. states?," Letters in Spatial and Resource Sciences, Springer, vol. 5(1), pages 25-31, March.
    12. Brenton, Paul & Portugal-Perez, Alberto & Regolo, Julie, 2014. "Food prices, road infrastructure, and market integration in Central and Eastern Africa," Policy Research Working Paper Series 7003, The World Bank.
    13. Li, Jianglong & Lin, Boqiang, 2017. "Does energy and CO2 emissions performance of China benefit from regional integration?," Energy Policy, Elsevier, vol. 101(C), pages 366-378.
    14. A. Nchake Mamello & Edwards Lawrence & N. Kaya Tresor, 2017. "Working Paper 272 - Price effects of borders between Lesotho and South Africa," Working Paper Series 2389, African Development Bank.
    15. Cabolis, Christos & Clerides, Sofronis & Ioannou, Ioannis & Senft, Daniel, 2007. "A textbook example of international price discrimination," Economics Letters, Elsevier, vol. 95(1), pages 91-95, April.
    16. Michel Fouquin & Jules Hugot, 2016. "Back to the Future: International Trade Costs and the Two Globalizations," Vniversitas Económica 15130, Universidad Javeriana - Bogotá.
    17. Aker, Jenny C. & Klein, Michael W. & O'Connell, Stephen A. & Yang, Muzhe, 2014. "Borders, ethnicity and trade," Journal of Development Economics, Elsevier, vol. 107(C), pages 1-16.
    18. Araujo, Luis & Mion, Giordano & Ornelas, Emanuel, 2016. "Institutions and export dynamics," Journal of International Economics, Elsevier, vol. 98(C), pages 2-20.
    19. David Fielding & Christopher Hajzler & James Macgee, 2015. "Distance, Language, Religion, and the Law of One Price: Evidence from Canada and Nigeria," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(5), pages 1007-1029, August.
    20. Mahbub Morshed, A.K.M., 2007. "Is there really a "border effect"?," Journal of International Money and Finance, Elsevier, vol. 26(7), pages 1229-1238, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rgscpp:v:14:y:2022:i:6:p:292-307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1757-7802 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.