IDEAS home Printed from https://ideas.repec.org/a/pia/review/v2y2011i1n5.html
   My bibliography  Save this article

The Impact of International Trade Flows on Economic Growth in Brazilian States

Author

Listed:
  • Marie Daumal
  • Selin Özyurt

Abstract

This paper explores the impact of trade openness on the economic growth of Brazilian states according to their initial income level. This empirical study covers 26 Brazilian states over the period 1989-2002. Growth rates of Brazilian states are modeled as dependent on international trade flows and a set of control variables such as initial income level, human capital, private and public physical capital, growth rate of labor force and a number of interaction terms with trade openness. This empirical analysis relies on dynamic growth regressions, using the system GMM estimator. The results indicate that openness is more beneficial to states with a high level of initial per capita income and therefore contributes to increased regional disparities in Brazil. In addition, trade openness favors more industrialized states, well-endowed in human capital, rather than states whose economic activity is mainly based on agriculture. These results have important policy implications since achieving balanced territorial development has become a priority for the Brazilian federal government over the last few decades.

Suggested Citation

  • Marie Daumal & Selin Özyurt, 2011. "The Impact of International Trade Flows on Economic Growth in Brazilian States," Review of Economics and Institutions, Università di Perugia, vol. 2(1).
    • Handle: RePEc:pia:review:v:2:y:2011:i:1:n:5
    as

    Download full text from publisher

    File URL: https://rei.unipg.it/rei/article/view/27
    Download Restriction: Requires registration. Users must be registered and log in to access full text
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ansgar Belke & Andreas Wernet, 2015. "Poverty Reduction through Growth and Redistribution Policies—a Panel Analysis for 59 Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 19(1), pages 143-162, February.
    2. Chin, Lee & Yousefi, Abdolaziz, 2017. "Non-Tariff Barriers and Their Effect on Export: Evidence from 5 ASEAN Countries," MPRA Paper 118781, University Library of Munich, Germany.
    3. Hulya Ulku & Mehmet Pamukcu, 2015. "The impact of R&D and knowledge diffusion on the productivity of manufacturing firms in Turkey," Journal of Productivity Analysis, Springer, vol. 44(1), pages 79-95, August.
    4. Ali Sekkach, 2021. "Assessment of the impact of trade openness on economic growth: Case of Sub-Saharan Africa [Evaluation de l'impact de l'ouverture commerciale sur la croissance économique: le cas de l'Afrique subsah," Post-Print hal-03492216, HAL.

    More about this item

    Keywords

    international trade; growth equation; GMM estimator; Brazilian states;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    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:pia:review:v:2:y:2011:i:1:n:5. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Ubaldo Pizzoli (email available below). General contact details of provider: https://edirc.repec.org/data/deperit.html .

    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.