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Economic Loss to theBrazilian Regions Due to the Doha Round Failure

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  • Matheus Wemerson Gomes Pereira
  • Erly Cardoso Teixeira
  • ÂngeloCosta Gurgel

Abstract

We build a database and model to develop general equilibrium analysis of the Brazilian economy at the level of the five macro regions. The model is multiregional at global level as also at the Brazilian level. The project is coupled to the GTAP model through disaggregation of the original Brazilian input-output matrix and trade flows and follows the GTAPinGAMS structure and syntax to generate the General Equilibrium Analysis Project for the Brazilian Economy (PAEG). The regional database is that of the GTAP version 6 and represent the 2001 world economy. We aggregate the data in seven regions plus the five Brazilian sub-regions and nineteen commodities/sectors to apply the scenario Doha Round to determine the probable losses to the Brazilian regions from the failure of the Doha round of negotiations. It is analyzed cuts in the agricultural and manufactures (NAMA proposal) import tariffs via the application of the Swiss formula, reduction in the agricultural production subsidies and elimination of agricultural export subsidies. The results show that although the regions are affected in different ways, the Doha Round failure generates losses for all Brazilian regions. The losses are greater for the Midwest and South regions, the most important for the Brazilian agricultural production.

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Paper provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its series Anais do XXXVII Encontro Nacional de Economia [Proceedings of the 37th Brazilian Economics Meeting] with number 120.

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Date of creation: 2011
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Handle: RePEc:anp:en2009:120

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  1. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Society for Computational Economics, vol. 14(1-2), pages 1-46, October.
  2. Rutherford, Thomas F., 1995. "Extension of GAMS for complementarity problems arising in applied economic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1299-1324, November.
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