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Interregional Trade, Structural Changes and Regional Inequality

Author

Listed:
  • Araujo, Inacio F.

    (Departamento de Economia, Universidade de São Paulo)

  • Haddad, Eduardo A.

    (Departamento de Economia, Universidade de São Paulo)

Abstract

This study explores changes in regional inequality and examines distinct adjustment patterns among Brazilian states investigating the role played by interregional trade during economic stagnation. We combine structural decomposition analysis with observed demographic changes to identify the main drivers of change in regional inequality. By focusing on different dimensions of integration, we show that changes in intra-regional and international integration were the main drivers of the observed reduction in regional inequality. However, interregional trade was critical to drive changes in regional value-added, acting as an absorber of structural changes for the richer states.

Suggested Citation

  • Araujo, Inacio F. & Haddad, Eduardo A., 2024. "Interregional Trade, Structural Changes and Regional Inequality," TD NEREUS 7-2024, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    • Handle: RePEc:ris:nereus:2024_007
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    More about this item

    Keywords

    Interregional trade; Domestic trade; Regional disparity; Location of economic activities; Economic recession; Input-output analysis.;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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