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Border Effects of Brazilian States

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  • Daumal, Marie
  • Zignago, Soledad

Abstract

We estimate the degree of trade integration among Brazilian states and calculate the magnitude of the Brazilian states' engagement in international trade in the years 1991, 1997, 1998 and 1999 using the methodology of border effects. We show that the Brazilian market is rather highly fragmented but less than the Chinese market. Brazilian sub-national borders reduced interstate trade by a factor of 23 in 1991 and a factor of 13 in 1999, indicating an ongoing process of domestic integration. International trade integration of Brazilian states increased over the period 1991-1999 in conjunction with the strategy of outward orientation. Border effects differ greatly among Brazilian states : internal and international trade integration is low for Northern Regions (with the exception of Amazonas State) and high for Southern regions, the most domestically integrated states being also those most engaged in international trade.

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Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/7448.

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Date of creation: Jun 2008
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Publication status: Published in Document de travail - Centre d'études prospectives et d'informations internationales, 2008
Handle: RePEc:dau:papers:123456789/7448

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Keywords: Effets frontières; commerce international; intégration du marché intérieur; Brazil; border effects; international trade; domestic integration;

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Citations

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Cited by:
  1. Yücer, Aycil & Siroën, Jean-Marc, 2011. "Did MERCOSUR affect interstate Brazilian trade ?," Economics Papers from University Paris Dauphine 123456789/5844, Paris Dauphine University.
  2. Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2012. "Classic and Spatial Shift-Share Analysis of State-Level Employment Change in Brazil," Working Papers in Economics 12/08, University of Waikato, Department of Economics.
  3. Siroën, Jean-Marc & Yücer, Aycil, 2012. "The Impact of MERCOSUR on Trade of Brazilian States," Economics Papers from University Paris Dauphine 123456789/7077, Paris Dauphine University.
  4. Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2012. "Agglomeration Externalities and 1981-2006 Regional Growth in Brazil," Working Papers in Economics 12/07, University of Waikato, Department of Economics.
  5. Herrmann-Pillath, Carsten & Libman, Alexander & Yu, Xiaofan, 2014. "Economic integration in China: Politics and culture," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 470-492.
  6. Francisco Requena & Carlos Llano, 2010. "The border effects in Spain: an industry-level analysis," Empirica, Springer, vol. 37(4), pages 455-476, November.

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