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Estimação das Elasticidades de Substituição do comércio regional do Brasil [Estimations of Elasticities of regional trade in Brazil]

Author

Listed:
  • Weslem Rodrigues Faria

    (UFJF)

  • Eduardo Amaral Haddad

    (FEA/USP)

Abstract

This study estimates elasticities of regional trade in Brazil considering 110 products and 558 regions. The elasticities were estimated using the Armington (1969) model, adapted from Bilgic’s (2002) suggestion regarding the definition of variables. Few studies were identified in the literature that aimed at estimating elasticities of substitution in regional trade, adding relative importance to this study. This fact may be related to the generation of the database because of the non-triviality in the numerous requirements and specific information of the economy. The estimation results presented, in general, coefficients with expected signs and the elasticities change according to the types of products. Products related to agricultural and mining activities had less elastic coefficients than the coefficients of the service activities. The products related to industrial activities presented jointly na average coefficient equal to -1.775.

Suggested Citation

  • Weslem Rodrigues Faria & Eduardo Amaral Haddad, 2014. "Estimação das Elasticidades de Substituição do comércio regional do Brasil [Estimations of Elasticities of regional trade in Brazil]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 24(1), pages 141-168, January-A.
    • Handle: RePEc:nov:artigo:v:24:y:2014:i:1:p:141-168
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    Citations

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    Cited by:

    1. Josef Bajzik & Tomas Havranek & Zuzana Irsova & Jiri Schwarz, 2019. "Estimating the Armington Elasticity: The Importance of Data Choice and Publication Bias," Working Papers IES 2019/19, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jul 2019.

    More about this item

    Keywords

    Armington elasticities; regional trade; model consistent estimation; Brazilian economy;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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