Regional Impacts of Trade Liberalization Strategies in Brazil
AbstractThere 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 InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p311.
Date of creation: Aug 2004
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Other versions of this item:
- Edson Paulo Domingues & Mauro Borges Lemos, 2004. "Regional impacts of trade liberalization strategies in Brazil," Textos para DiscussÃ£o Cedeplar-UFMG td234, Cedeplar, Universidade Federal de Minas Gerais.
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-09 (All new papers)
- NEP-GEO-2005-11-09 (Economic Geography)
- NEP-INT-2005-11-09 (International Trade)
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