IDEAS home Printed from https://ideas.repec.org/a/pia/review/v2y2011i1n5.html
   My bibliography  Save this article

The Impact of International Trade Flows on Economic Growth in Brazilian States

Author

Listed:
  • Marie Daumal
  • Selin Özyurt

Abstract

This paper explores the impact of trade openness on the economic growth of Brazilian states according to their initial income level. This empirical study covers 26 Brazilian states over the period 1989-2002. Growth rates of Brazilian states are modeled as dependent on international trade flows and a set of control variables such as initial income level, human capital, private and public physical capital, growth rate of labor force and a number of interaction terms with trade openness. This empirical analysis relies on dynamic growth regressions, using the system GMM estimator. The results indicate that openness is more beneficial to states with a high level of initial per capita income and therefore contributes to increased regional disparities in Brazil. In addition, trade openness favors more industrialized states, well-endowed in human capital, rather than states whose economic activity is mainly based on agriculture. These results have important policy implications since achieving balanced territorial development has become a priority for the Brazilian federal government over the last few decades.

Suggested Citation

  • Marie Daumal & Selin Özyurt, 2011. "The Impact of International Trade Flows on Economic Growth in Brazilian States," Review of Economics and Institutions, Università di Perugia, vol. 2(1).
  • Handle: RePEc:pia:review:v:2:y:2011:i:1:n:5
    as

    Download full text from publisher

    File URL: http://www.rei.unipg.it/rei/article/view/27
    Download Restriction: Requires registration. Users must be registered and log in to access full text

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:cup:apsrev:v:95:y:2001:i:04:p:859-874_40 is not listed on IDEAS
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, November.
    3. Nelson, Forrest & Olson, Lawrence, 1978. "Specification and Estimation of a Simultaneous-Equation Model with Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 695-709, October.
    4. Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-560, June.
    5. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    6. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 225-238.
    7. Lewis, Alan, 1979. "An Empirical Assessment of Tax Mentality," Public Finance = Finances publiques, , vol. 34(2), pages 245-257.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hulya Ulku & Mehmet Pamukcu, 2015. "The impact of R&D and knowledge diffusion on the productivity of manufacturing firms in Turkey," Journal of Productivity Analysis, Springer, pages 79-95.

    More about this item

    Keywords

    international trade; growth equation; GMM estimator; Brazilian states;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pia:review:v:2:y:2011:i:1:n:5. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ubaldo Pizzoli). General contact details of provider: http://edirc.repec.org/data/deperit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.