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The Potential Impacts Of The Port Of Salvador Improvements On The Brazilian Cotton Industry

Author

Listed:
  • Costa, Rafael
  • Rosson, Parr
  • Costa, Ecio de Farias

Abstract

A spatial price equilibrium model of the international cotton sector was used to analyze the impacts of the Port of Salvador improvements on the Brazilian cotton industry and world cotton trade. The port of Salvador is undergoing relevant improvements in its facilities and physical structure. As a result of these improvements, the port of Salvador is expected to become more competitive and attract ocean shipping companies which are willing to export products directly to Asian importing markets. Scenarios with different reduction in export cost for the port of Salvador were examined. For all scenarios, the new direct ocean shipping lines were found to be important for the cotton exporters in Brazil, especially for the producers in the state of Bahia. In addition, results suggested that the state of Bahia would have the potential of becoming the largest cotton exporting state in Brazil.

Suggested Citation

  • Costa, Rafael & Rosson, Parr & Costa, Ecio de Farias, 2015. "The Potential Impacts Of The Port Of Salvador Improvements On The Brazilian Cotton Industry," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(1), pages 1-17, January.
    • Handle: RePEc:ags:ijfaec:200125
    DOI: 10.22004/ag.econ.200125
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    Cited by:

    1. Sayef Bakari & Sofien Tiba, 2022. "Agricultural Exports, Agricultural Imports And Economic Growth In China," Journal of Smart Economic Growth, , vol. 7(3), pages 35-61, September.

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