IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331844.html
   My bibliography  Save this paper

Regional inequality and growth: the role of interregional trade in the Brazilian economy

Author

Listed:
  • Magalhães, Aline Souza
  • Domingues, Edson

Abstract

This paper deals with interregional trade in the Brazilian Economy, estimating its role on efficiency, international competitiveness and regional inequality. Our modeling encompasses much detail. Firstly, we use a large-scale multi-regional computable general equilibrium (CGE) model of Brazil. The model is bottom-up for Brazil's 27 states. Despite the high level of regional disaggregation, the level of sectoral disaggregation is also high, at 36 sectors. Applying the CGE model in simulation exercises, we explore the impacts of reducing transport costs among Brazilian states, identifying the most relevant links for different economic goals (national growth, production costs and regional inequality). The procedure is similar to the “field of influence” approach in the input-output literature (Hewings et al, 2005). We find that trade among most developed states have impact on national growth and international competitiveness, but can also increase regional inequality.

Suggested Citation

  • Magalhães, Aline Souza & Domingues, Edson, 2009. "Regional inequality and growth: the role of interregional trade in the Brazilian economy," Conference papers 331844, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331844
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331844/files/4571.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Joaquim Bento de Souza Ferreira Filho & Mark Horridge, 2006. "The Doha Development Agenda and Brazil: Distributional Impacts ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 362-369.
    2. Axel Michaelowa & Regina Betz, 2001. "Implications of EU Enlargement on the EU Greenhouse Gas 'Bubble' and Internal Burden Sharing," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 1(2), pages 267-279, April.
    3. Walmsley, Terrie L. & Winters, L. Alan & Ahmed, S. Amer & Parsons, Christopher R., 2005. "Measuring the Impact of the Movement of Labour Using a Model of Bilateral Migration Flows," Conference papers 331440, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Ray Barrell & John Fitzgerald & Rebecca Riley, 2010. "EU Enlargement and Migration: Assessing the Macroeconomic Impacts," Journal of Common Market Studies, Wiley Blackwell, vol. 48(2), pages 373-395, March.
    5. Fritz Breuss, 2002. "Benefits and Dangers of EU Enlargement," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 29(3), pages 245-274, September.
    6. Walmsley, Terrie L. & Winters, L. Alan, 2005. "Relaxing the Restrictions on the Temporary Movement of Natural Persons: A Simulation Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 688-726.
    7. Sinn Hans-Werner, 2000. "EU Enlargement, Migration, and Lessons from German Unification," German Economic Review, De Gruyter, vol. 1(3), pages 299-314, August.
    8. Subhayu Bandyopadhyay & Sajal Lahiri & Suryadipta Roy, 2011. "Political Asymmetry And Common External Tariffs In A Customs Union," Economics and Politics, Wiley Blackwell, vol. 23(1), pages 88-106, March.
    9. Horridge, Mark & Madden, John & Wittwer, Glyn, 2005. "The impact of the 2002-2003 drought on Australia," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 285-308, April.
    10. Subhayu Bandyopadhyay & Sajal Lahiri & Suryadipta Roy, 2008. "Enlargement and common external tariff in a political-economic model of customs union," Working Papers 2008-022, Federal Reserve Bank of St. Louis.
    11. Matthew W. Peter & Mark Horridge & G.A.Meagher & Fazana Naqvi & B.R.Parmenter, 1996. "The Theoretical Structure of MONASH-MRF," Centre of Policy Studies/IMPACT Centre Working Papers op-85, Victoria University, Centre of Policy Studies/IMPACT Centre.
    12. Ray Barrell & John Fitzgerald & Rebecca Riley, 2010. "EU Enlargement and Migration: Assessing the Macroeconomic Impacts," Journal of Common Market Studies, Wiley Blackwell, vol. 48(2), pages 373-395, March.
    13. Walmsley, Terrie & Ahmed, Syud Amer & Parsons, Christopher, 2005. "The Impact of Liberalizing Labor Mobility in the Pacific Region," GTAP Working Papers 1874, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    14. repec:oup:ecpoli:v:12:y:1997:i:24:p:125-176 is not listed on IDEAS
    15. Joaquim Bento de Souza Ferreira Filho & Mark Horridge, 2004. "Regional Inequality, Poverty and Economic Integration in Brazil," ERSA conference papers ersa04p181, European Regional Science Association.
    16. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    17. Ferreira Filho, Joaquim Bento de Souza & Horridge, Mark Jonathan, 2006. "Economic Integration, Poverty and Regional Inequality in Brazil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 60(4), February.
    18. Haddad, Eduardo A. & Hewings, Geoffrey J.D., 2005. "Market imperfections in a spatial economy: some experimental results," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 476-496, May.
    19. Burniaux, Jean-March & Truong, Truong P., 2002. "Gtap-E: An Energy-Environmental Version Of The Gtap Model," Technical Papers 28705, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    21. Edson Paulo Domingues & Francisca Diana Ferreira Viana & Heder Carlos de Oliveira, 2007. "Investimentos em infra-estrutura no Nordeste: projeções de impacto e perspectivas de desenvolvimento," Textos para Discussão Cedeplar-UFMG td319, Cedeplar, Universidade Federal de Minas Gerais.
    22. Eduardo Haddad & Geoffrey Hewings, 2007. "Analytically Important Transportation Links: A Field Of Influence Approach To Cge Models," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 085, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    23. Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 12(24), pages 125-176.
    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. Cury, Samir & Coelho, Allexandro Mori & Pedrozo, Euclides, 2009. "The Impacts of Income Transfer Programs on Income Distribution and Poverty in Brazil: An Integrated Microsimulation and Computable General Equilibrium Analysis," Conference papers 331846, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Esmedekh Lkhanaajav, 2016. "CoPS-style CGE modelling and analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-264, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 815-876, Elsevier.
    4. Eduardo Amaral Haddad & Fernando Salgueiro Perobelli, 2004. "Trade Liberalization And Regional Inequality: Do Transportation Costs Impose A Spatial Poverty Trap?," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32nd Brazilian Economics Meeting] 131, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Razzaque, Mohammad A. & Raihan, Selim & Ahmed, Nazneen, 2006. "Global Rice Trade Liberalisation: Implications from Some Alternative Scenarios," Conference papers 331515, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Ole Boysen & Alan Matthews, 2008. "The Impact of Developed Country Agricultural Trade Liberalization on Poverty: A Survey," Working Papers hal-03416399, HAL.
    7. AydIn, Levent & Acar, Mustafa, 2010. "Economic and environmental implications of Turkish accession to the European Union: A CGE analysis," Energy Policy, Elsevier, vol. 38(11), pages 7031-7040, November.
    8. Hasegawa, Marcos & Guilhoto, Joaquim José Martins, 2006. "Investimento e produtividade dos fatores primários: uma análise de equilíbrio geral aplicado [Investment and productivity of primary factors: a general applied general equilibrium analysis]," MPRA Paper 54555, University Library of Munich, Germany.
    9. Alvaro Calzadilla & Katrin Rehdanz & Richard S.J. Tol, 2008. "The Eonomic Impact Of More Sustainable Water Use In Agriculture: A Computable General Equilibrium Analysis," Working Papers FNU-169, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2008.
    10. Arndt Feuerbacher & Jonas Luckmann, Humboldt-University of Berlin, 2017. "Modelling field operations in a computable general equilibrium model: An application to labour shortages in Bhutan," EcoMod2017 10464, EcoMod.
    11. Eboli, Fabio & Parrado, Ramiro & Roson, Roberto, 2010. "Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model," Environment and Development Economics, Cambridge University Press, vol. 15(5), pages 515-533, October.
    12. Eduardo Amaral Haddad & Michael L. Lahr & Dina N. Elshahawany & Moisés Vassallo, 2016. "Regional analysis of domestic integration in Egypt: an interregional CGE approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-33, December.
    13. Yujing Niu & Wenying Chen & Zongxin Wu, 2013. "The Economic and Environmental Impact on China of Carbon Tariffs Based on Gage Model," Energy & Environment, , vol. 24(7-8), pages 1295-1307, December.
    14. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Alvaro Calzadilla & Katrin Rehdanz & Richard Betts & Pete Falloon & Andy Wiltshire & Richard Tol, 2013. "Climate change impacts on global agriculture," Climatic Change, Springer, vol. 120(1), pages 357-374, September.
    16. Siriwardana, Mahinda & Meng, Sam & McNeill, Judith, 2013. "Border Adjustments under Unilateral Carbon Pricing: Are they Warranted in the Case of Australian Carbon Tax?," Conference papers 332357, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Mörsdorf, George, 2022. "A simple fix for carbon leakage? Assessing the environmental effectiveness of the EU carbon border adjustment," Energy Policy, Elsevier, vol. 161(C).
    18. Kuiper, Marijke, 2007. "What if not all land is created equal? The role of heterogeneous land when assessing the impact of trade liberalization on developing countries," Conference papers 331658, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Britz, Wolfgang & Li, Jingwen & Shang, Linmei, 2021. "Combining large-scale sensitivity analysis in Computable General Equilibrium models with Machine Learning: An Example Application to policy supporting the bio-economy," Conference papers 333285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. B. Henderson & A. Golub & D. Pambudi & T. Hertel & C. Godde & M. Herrero & O. Cacho & P. Gerber, 2018. "The power and pain of market-based carbon policies: a global application to greenhouse gases from ruminant livestock production," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(3), pages 349-369, March.

    More about this item

    Keywords

    International Relations/Trade; Research Methods/ Statistical Methods;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

    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:ags:pugtwp:331844. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.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.