IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/54562.html
   My bibliography  Save this paper

Transport infrastructure and regional development in Brazil

Author

Listed:
  • Araújo, Maria da Piedade
  • Guilhoto, Joaquim José Martins

Abstract

This paper analyses the impacts of the implementation of a transportation infrastructure project over the regional and national economic growth and its contribution to the decrease of the regional disparities in Brazil, as far as accessibility is concerned. This paper takes, as an illustrative case, the impact of the partial duplication of the highway BR–116, which is the main route between the Northeast region and the Center-South of the country. The methodological framework consists in the integration of a transportation model with the MIBRA model, an interregional applied equilibrium model of the Brazilian economy. The transportation model measures the change in the interregional distance and the accessibility to transport investment, while the MIBRA model estimates the spatial economic effects of the projects on the variables described above. The benchmark year is 1999. The model was constructed for six Brazilian regions, North, Northeast, Southeast, Center-West, South and São Paulo, and has details for twenty nine industries. In the simulation, the BR-116 highway has being duplicated by a total of 1,724 km. Overall the results show an increase in Brazilian GDP. In the short run, the change of the main economics indicators (GDP, demand of families and employment) is positive to almost all of the regions, with the Northeast region, the poorest one, being the more beneficiated, considering the GDP change. However, in the long run, in spite of positive changes in the GDP, the negative change in the employment level in the Northeast region persists. Despite the employment result, it is possible to verify that the duplication of BR-116 is capable of generate a propitious trade flow to the poorest regions of the country and to contribute to an increase in the production level, mainly in the Northeast region. As far as accessibility is concerned, it is possible not only to have access to cheaper inputs, but also to expand the production of more competitive products either to the domestic or to the external market.

Suggested Citation

  • Araújo, Maria da Piedade & Guilhoto, Joaquim José Martins, 2005. "Transport infrastructure and regional development in Brazil," MPRA Paper 54562, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54562
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/54562/1/MPRA_paper_54562.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. L. Lavinas & M. H. Garcia & M. R. Amaral, 1996. "Desigualdades regionais e retomada do crescimento num quadro de integração económica," Documentos de Trabajo (working papers) 1196, Department of Economics - dECON.
    2. Guilhoto, Joaquim José Martins & Hasegawa, Marcos & Lopes, Ricardo Luis, 2002. "A estrutura teórica do modelo inter-regional para a economia brasileira - MIBRA [The theoretical structure of inter regional model for the Brazilian economy - MIBRA]," MPRA Paper 54019, University Library of Munich, Germany.
    3. 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.
    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. 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].
    2. 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.
    3. Eduardo Haddad & Alexandre A. Porsse & Eduardo P. Ribeiro, 2006. "Modeling Interjurisdictional Tax Competition in a Federal System," ERSA conference papers ersa06p359, European Regional Science Association.
    4. Eduardo A. Haddad & Nadim Farajalla & Marina Camargo & Ricardo L. Lopes & Flavio V. Vieira, 2014. "Climate change in Lebanon: Higher-order regional impacts from agriculture," REGION, European Regional Science Association, vol. 1, pages 9-24.
    5. Thomas Rutherford & Hannu Torma†, 2010. "Efficiency of Fiscal Measures in Preventing Out-migration from North Finland," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 465-475.
    6. Silveira, Suely F.R & Guilhoto, Joaquim José Martins, 1999. "Water use in the São Francisco River basin, Brazil: an interregional input-output analysis," MPRA Paper 54674, University Library of Munich, Germany.
    7. 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.
    8. Haddad, Eduardo & Domingues, Edson, 2002. "Tax policy and re-location," ERSA conference papers ersa02p074, European Regional Science Association.
    9. Peter Dixon & James Giesecke & Maurreen Rimmer, 2004. "Regional macroeconomic outcomes under alternative arrangements for the financing of urban infrastructure," ERSA conference papers ersa04p116, European Regional Science Association.
    10. Rocha, Marcelo Theoto & Guilhoto, Joaquim José Martins & Lima, Patrícia Verônica Pinheiro Sales & Casimiro Filho, Francisco & Miranda, Silvia Helena G. de, 2000. "Exchange rate versus tariff policies in Brazil: results from MIBRA-USP, an interrregional applied general equilibrium model of the Brazilian economy," MPRA Paper 54230, University Library of Munich, Germany.
    11. Edson Paulo Domingues & Mauro Borges Lemos, 2004. "Regional impacts of trade liberalization strategies in Brazil," Textos para Discussão Cedeplar-UFMG td234, Cedeplar, Universidade Federal de Minas Gerais.
    12. Eduardo Haddad & Geoffrey Hewings, 2004. "Transportation Costs, Increasing Returns and Regional Growth: An Interregional CGE Analysis," ERSA conference papers ersa04p461, European Regional Science Association.
    13. Aline Souza Magalhães & Edson Domingues, 2009. "Regional inequality and growth: the role of interregional trade in the Brazilian economy," Textos para Discussão Cedeplar-UFMG td359, Cedeplar, Universidade Federal de Minas Gerais.
    14. Randall, Alan & Tisdell, Clement A. & Trewin, Ray & Singh, Satbir & Simmons, Phil & Adams, Philip D. & Loane, Bill, 1999. "Book reviews," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(1), pages 1-16, March.
    15. J. A. León & M. Ordaz & E. Haddad & I. F. Araújo, 2022. "Risk caused by the propagation of earthquake losses through the economy," Nature Communications, Nature, vol. 13(1), pages 1-11, December.
    16. Betarelli, Admir Antonio & Domingues, Edson Paulo & Hewings, Geoffrey John Dennis, 2020. "Transport policy, rail freight sector and market structure: The economic effects in Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 1-23.
    17. George Verikios, 2006. "Understanding the World Wool Market: Trade, Productivity and Grower Incomes. Part 3: A Model of the World Wool Market," Economics Discussion / Working Papers 06-21, The University of Western Australia, Department of Economics.
    18. Araújo, Maria da Piedade & Guilhoto, Joaquim José Martins, 2008. "Infra-estrutura de transpporte: uma análise através de modelos aplicados de equilíbrio geral inter-regional [Transport infrastructure: an analysis with applied models of general equilibrium]," MPRA Paper 31412, University Library of Munich, Germany.
    19. Hannu Törmä, 2008. "Do Small Town Development Projects Matter, and Can CGE Help?," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(2), pages 247-268.
    20. James Giesecke & John Madden, 2010. "Uncovering the Factors behind Comparative Regional Economic Performance: A Multi-regional Computable General Equilibrium (CGE) Approach," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1329-1349.

    More about this item

    Keywords

    Applied general equilibrium model; transport infrastructure; regional development; BR-116 highway;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    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:pra:mprapa:54562. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.