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Free Trade and Transportation Infrastructure in Brazil: Towards an Integrated Approach

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  • Resende, Paulo
  • Guilhoto, Joaquim José Martins
  • Hewings, Geoffrey J.D.

Abstract

In the development of models analyzing the impacts of free trade agreements between countries or regions within countries, relatively little attention has been paid to potential limitations imposed by transportation infrastructure. In free trade blocks such as those represented by the European Union or the USA and Canada part of NAFTA, the implicit assumption of little or no impact imposed by transportation infrastructure may be justified. However, in the case of MERCOSUL in South America, this assumption may need to be challenged. In this paper, an illustration of a potential approach to this problem will be illustrated with reference to Brazil. Attention will be devoted to the way in which the potential gains from free trade within MERCOSUL were mapped onto a highway transportation network to identify the creation of additional bottlenecks and point out the need of highway improvements once the impacts of economic development result in higher transportation costs due to such bottlenecks.

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File URL: http://mpra.ub.uni-muenchen.de/43068/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43068.

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Date of creation: 2004
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Handle: RePEc:pra:mprapa:43068

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Keywords: free trade agreements; MERCOSUL;

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  1. Tschangho John Kim & Heejoo Ham & David E. Boyce, 2002. "Economic impacts of transportation network changes: Implementation of a combined transportation network and input-output model," Review of Economic Design, Springer, vol. 81(2), pages 223-246, 04.
  2. Euijune Kim & Kabsung Kim, 2002. "Impacts of regional development strategies on growth and equity of Korea: A multiregional CGE model," The Annals of Regional Science, Springer, vol. 36(1), pages 165-180.
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