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Regional Effects of Port Infrastructure: A Spatial CGE Application to Brazil

Author

Listed:
  • Eduardo A. Haddad

    (Fipe, Sao Paulo, Brazil, Department of Economics, University of Sao Paulo, Brazil, ehaddad@usp.br)

  • Geoffrey J. D. Hewings

    (Regional Economics Applications Laboratory, University of Illinois at Urbana-Champaign, USA)

  • Fernando S. Perobelli

    (Department of Economics, Federal University of Juiz de Fora, Brazil)

  • Raul A. C. dos Santos

    (Fipe, Sao Paulo, Brazil, Department of Economics, University of Sao Paulo, Brazil)

Abstract

This article attempts to elucidate one of the mechanisms that link trade barriers, in the form of port costs, and subsequent growth and regional inequality. Prior attention has focused on inland or link costs, but port costs can be considered as a further barrier to enhancing trade liberalization and growth. In contrast to a highway link, congestion at a port may have severe impacts that are spread over space and time whereas highway link congestion may be resolved within several hours. Since a port is part of the transportation network, any congestion/ disruption is likely to ripple throughout the hinterland. In this sense, it is important to model properly the role nodal components play in the context of spatial models and international trade. In this article, a spatial computable general equilibrium (CGE) model that is integrated to a transport network system is presented to simulate the impacts of increases in port efficiency in Brazil. The role of ports of entry and ports of exit are explicitly considered to grasp the holistic picture in an integrated interregional system. Measures of efficiency for different port locations are incorporated in the calibration of the model and used as the benchmark in our simulations. Three scenarios are evaluated: (1) an overall increase in port efficiency in Brazil to achieve international standards; (2) efficiency gains associated with decentralization in port management in Brazil; and (3) regionally differentiated increases in port efficiency to reach the boundary of the national efficiency frontier.

Suggested Citation

  • Eduardo A. Haddad & Geoffrey J. D. Hewings & Fernando S. Perobelli & Raul A. C. dos Santos, 2010. "Regional Effects of Port Infrastructure: A Spatial CGE Application to Brazil," International Regional Science Review, , vol. 33(3), pages 239-263, July.
  • Handle: RePEc:sae:inrsre:v:33:y:2010:i:3:p:239-263
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    Citations

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    Cited by:

    1. Romeo Danielis & Tullio Gregori, 2013. "An input-output-based methodology to estimate the economic role of a port: The case of the port system of the Friuli Venezia Giulia Region, Italy," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 15(2), pages 222-255, June.
    2. Haddad, Eduardo A. & Hewings, Geoffrey J.D. & Porsse, Alexandre A. & Van Leeuwen, Eveline S. & Vieira, Renato S., 2015. "The underground economy: Tracking the higher-order economic impacts of the São Paulo Subway System," Transportation Research Part A: Policy and Practice, Elsevier, vol. 73(C), pages 18-30.
    3. Bottasso, Anna & Conti, Maurizio & Ferrari, Claudio & Tei, Alessio, 2014. "Ports and regional development: A spatial analysis on a panel of European regions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 65(C), pages 44-55.
    4. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier.
    5. Park, Jin Suk & Seo, Young-Joon, 2016. "The impact of seaports on the regional economies in South Korea: Panel evidence from the augmented Solow model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 85(C), pages 107-119.
    6. Zhang, Yi & Lam, Jasmine Siu Lee, 2016. "Estimating economic losses of industry clusters due to port disruptions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 17-33.
    7. Euijune Kim & Geoffrey J.D. Hewings & Hidayat Amir, 2015. "Project Evaluation of Transportation Projects: an Application of Financial Computable General Equilibrium Model," ERSA conference papers ersa15p453, European Regional Science Association.
    8. Hewings, Geoffrey J.D., 2014. "Spatially blind trade and fiscal impact policies and their impact on regional economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(4), pages 590-602.
    9. César Ducruet & Hidekazu Itoh & Olivier Joly, 2015. "Ports and the local embedding of commodity flows," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 607-627, August.
    10. repec:eee:retrec:v:61:y:2017:i:c:p:44-55 is not listed on IDEAS
    11. Romeo Danielis & Tullio Gregori, 2013. "An input-output-based methodology to estimate the economic role of a port: The case of the port system of the Friuli Venezia Giulia Region, Italy," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 15(2), pages 222-255, June.
    12. repec:eee:transa:v:107:y:2018:i:c:p:126-139 is not listed on IDEAS
    13. repec:kap:netspa:v:17:y:2017:i:3:d:10.1007_s11067-017-9356-z is not listed on IDEAS
    14. repec:elg:eechap:14395_2 is not listed on IDEAS

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