IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The short-run regional effects of new investments and technological upgrade in the Brazilian automobile industry: An interregional computable general equilibrium analysis

  • Eduardo Haddad
  • Geoffrey Hewings

With a greater commitment to market forces in recent years, the Brazilian federal government is left with fewer options to manipulate growth in the less developed regions of the country. Thus, private investments play a key role in the process of regional development. New investments in the Brazilian automobile industry are being sought by the regions in a strong competition for incoming capital through fiscal incentives. One of the issues that concern labor unions surrounds the production technology embodied in the incoming capital, which is claimed to be accompanied by sharp reductions in employment levels. In this paper, the regional impact of the new investments in the automobile industry is evaluated through the use of an interregional computable general equilibrium model. Attention is directed to employment estimates and the impacts on regional inequality. The simulation results for the short-run show that: the employment effects of the labour-saving technology in the automobile industry are positive for the economy as a whole; and even though investments in the less developed region (the Northeast) are more beneficial to the improvement of regional imbalances in the country, in terms of efficiency, investments in the Centre-South generate higher national economic growth.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.tandfonline.com/doi/abs/10.1080/13600819908424182
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Taylor & Francis Journals in its journal Oxford Development Studies.

Volume (Year): 27 (1999)
Issue (Month): 3 ()
Pages: 359-383

as
in new window

Handle: RePEc:taf:oxdevs:v:27:y:1999:i:3:p:359-383
Contact details of provider: Web page: http://www.tandfonline.com/CODS20

Order Information: Web: http://www.tandfonline.com/pricing/journal/CODS20

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:taf:oxdevs:v:27:y:1999:i:3:p:359-383. 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: (Michael McNulty)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.