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Is the truth out there? Avaliando as opções de integração econômica para o Brasil
[Is the truth out there? Evaluating the economic integration options for Brazil]

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  • Almeida, Eduardo Simões de
  • Guilhoto, Joaquim José Martins

Abstract

The Brazilian integration strategy has been focused on agreements based upon North-South and South-South negotiations. However, such negotiations based upon tariffs and non-tariff barriers face serious troubles to be done. This paper is aimed at appraising options of economic integration policies based upon the reduction of transport costs. To do this, a spatial applied general equilibrium model was elaborated for analyzing economic integration policies in the country. This model incorporates explicitly transport cost as a trade barrier. The model is specified for five Brazilian macro-regions and five external regions (Nafta, Asia, European Union, South-American Community and rest of the World), with three production factors (unskilled labor, human capital and other factors). Several economic integration options were simulated in order to analyze what are the best ones for the country, appraised in terms of economic efficiency and regional equity. The findings show the option of the internal economic integration might be more viable than the external one in terms of social welfare gains and promotion of regional equity.

Suggested Citation

  • Almeida, Eduardo Simões de & Guilhoto, Joaquim José Martins, 2010. "Is the truth out there? Avaliando as opções de integração econômica para o Brasil [Is the truth out there? Evaluating the economic integration options for Brazil]," MPRA Paper 54443, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54443
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    More about this item

    Keywords

    Economic integration; spatial applied general equilibrium model; transport costs;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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