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Regional impacts of trade liberalization strategies in Brazil

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  • Edson Paulo Domingues

    ()
    (Cedeplar-UFMG)

  • Mauro Borges Lemos

    ()
    (Cedeplar-UFMG)

Abstract

There is a great interest in free trade areas (FTA) in Brazil, predominantly in the context of a proposed Free Trade Area of the Americas (FTAA). In addition, a free trade area between MERCOSUR (the customs union involving Brazil, Argentina, Uruguay, and Paraguay) and the European Union has also been considered. In this paper, an interregional computable general equilibrium (CGE) model is used to analyze the long-run regional effects of alternative trade liberalization strategies on Brazil. The model provides a description of the Brazilian inter-regional economic system, divided into two regions - Sao Paulo and Other Regions in Brazil. One of its innovations is a full specification of foreign trade in both regions, capturing the complete structure of trade flows and import tariffs, linking the two Brazilian regions and a set of foreign markets. In this way, adequate simulations of tariff liberalization can be implemented for several possibilities of trade agreements.

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Bibliographic Info

Paper provided by Cedeplar, Universidade Federal de Minas Gerais in its series Textos para Discussão Cedeplar-UFMG with number td234.

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Length: 31 pages
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:cdp:texdis:td234

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Keywords: computable general equilibrium; regional models; trade policy; Brazil;

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References

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  1. Edson Domingues & Eduardo Haddad & Fernando Perobelli, 2001. "Short-run Regional Effects of Alternative Strategies for Economic Integration: The Case of Brazil," ERSA conference papers, European Regional Science Association ersa01p210, European Regional Science Association.
  2. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , , vol. 21(3), pages 205-248, December.
  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.
  4. Edson P. Domingues & Eduardo A. Haddad, 2003. "Política Tributária e Re-localização," Revista Brasileira de Economia, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 57(4), pages 849-871, October.
  5. S. Illeris & G. Akehurst, 2002. "Introduction," The Service Industries Journal, Taylor & Francis Journals, Taylor & Francis Journals, vol. 22(1), pages 1-3, January.
  6. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Victoria University, Centre of Policy Studies/IMPACT Centre.
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Cited by:
  1. Haddad, Eduardo A. & Domingues, Edson P. & Perobelli, Fernando S., 2005. "Brazil-Argentina trade and its impacts in brazilian states," Investigaciones Regionales, Asociación Española de Ciencia Regional, Asociación Española de Ciencia Regional, issue 7, pages 113-137.
  2. Rodriguez, U-Primo E., 2007. "State-of-the-Art in Regional Computable General Equilibrium Modelling with a Case Study of the Philippines," Agricultural Economics Research Review, Agricultural Economics Research Association (India), Agricultural Economics Research Association (India), vol. 20(1).

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