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Regional inequality and growth: the role of interregional trade in the Brazilian economy

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Author Info
Aline Souza Magalhães (Cedeplar-UFMG)
Edson Domingues (Cedeplar-UFMG)

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Abstract

This paper deals with interregional trade in the Brazilian Economy, estimating its role on efficiency, international competitiveness and regional inequality. Our modeling encompasses much detail. Firstly, we use a large-scale multi-regional computable general equilibrium (CGE) model of Brazil. The model is bottom-up for Brazil's 27 states. Despite the high level of regional disaggregation, the level of sectoral disaggregation is also high, at 36 sectors. Applying the CGE model in simulation exercises, we explore the impacts of reducing transport costs among Brazilian states, identifying the most relevant links for different economic goals (national growth, production costs and regional inequality). The procedure is similar to the “field of influence” approach in the input-output literature (Hewings et al, 2005). We find that trade among most developed states have impact on national growth and international competitiveness, but can also increase regional inequality.

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Publisher Info
Paper provided by Cedeplar, Universidade Federal de Minas Gerais in its series Textos para Discussão Cedeplar-UFMG with number td359.

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Length: 33 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:cdp:texdis:td359

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Postal: Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil

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Related research
Keywords: CGE modeling; regional trade; inequality;

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Find related papers by JEL classification:
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  2. Philip D. Adams & J. Mark Horridge & Brian R. Parmenter, 2000. "MMRF-GREEN: A Dynamic, Multi-Sectoral, Multi-Regional Model of Australia," Centre of Policy Studies/IMPACT Centre Working Papers op-94, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  3. Joaquim Bento de Souza Ferreira Filho & Mark Horridge, 2004. "Economic Integration, Poverty and Regional Inequality in Brazil," Centre of Policy Studies/IMPACT Centre Working Papers g-149, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
    Other versions:
  4. Horridge, Mark & Madden, John & Wittwer, Glyn, 2005. "The impact of the 2002-2003 drought on Australia," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 285-308, April. [Downloadable!] (restricted)
  5. Joaquim Bento de Souza Ferreira Filho & Mark Horridge, 2006. "The Doha Development Agenda and Brazil: Distributional Impacts," Review of Agricultural Economics, American Agricultural Economics Association, vol. 28(3), pages 362-369, 09. [Downloadable!] (restricted)
  6. Edson Paulo Domingues & Francisca Diana Ferreira Viana & Heder Carlos de Oliveira, 2007. "Investimentos em infra-estrutura no Nordeste: projeções de impacto e perspectivas de desenvolvimento," Textos para Discussão Cedeplar-UFMG td319, Cedeplar, Universidade Federal de Minas Gerais. [Downloadable!]
  7. 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, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
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This page was last updated on 2009-12-15.

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