Do economic integration and fiscal competition help to explain location patterns?
AbstractDo trade integration and fiscal competition contribute to shape the economic landscape? The answer is yes. This paper uses a theoretical model and an econometric analysis of Brazilian regional manufacturing employment data over the period 1990-1998 to address this question. Brazil is a natural case study because this country liberalized trade during the 1990s and their sub-national governments engaged in a fiscal dispute. Econometric results show that trade liberalization has had an impact on spatial developments and this effect is increasing over time. Moreover, subsidies also exert an influence, but their relative importance is falling. --
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Bibliographic InfoPaper provided by ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 15-2004.
Date of creation: 2004
Date of revision:
Economic Integration; Fiscal Competition; Location Patterns; Manufacturing Industries; Brazil;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- F15 - International Economics - - Trade - - - Economic Integration
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - General
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
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- Sanguinetti, Pablo & Volpe Martincus, Christian, 2009. "Tariffs and manufacturing location in Argentina," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 155-167, March.
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