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Regional Impacts of Trade Liberalization Strategies in Brazil

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  • Edson Paulo Domingues
  • Mauro Borges Lemos

Abstract

There is a great interest in free trade areas (FTA) in Brazil, predominantly in the context of a proposed Free Trade Area of the Americas (FTAA). In addition, a free trade area between MERCOSUR (the customs union involving Brazil, Argentina, Uruguay, and Paraguay) and the European Union has also been considered. In this paper, an interregional computable general equilibrium (CGE) model is used to analyze the long-run regional effects of alternative trade liberalization strategies on Brazil. The model provides a description of the Brazilian inter-regional economic system, divided into two regions - Sao Paulo and Other Regions in Brazil. One of its innovations is a full specification of foreign trade in both regions, capturing the complete structure of trade flows and import tariffs, linking the two Brazilian regions and a set of foreign markets. In this way, adequate simulations of tariff liberalization can be implemented for several possibilities of trade agreements.

Suggested Citation

  • Edson Paulo Domingues & Mauro Borges Lemos, 2004. "Regional Impacts of Trade Liberalization Strategies in Brazil," ERSA conference papers ersa04p311, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa04p311
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    References listed on IDEAS

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    1. Domingues, Edson P. & Haddad, Eduardo A., 2003. "Política Tributária e Re-localização," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 57(4), October.
    2. Haddad Eduardo Domingues Edson, 2010. "Analyzing the Spatial Impact of Tax Policies: An Interregional CGE Framework for Brazil," EcoMod2002 330800031, EcoMod.
    3. Haddad, Eduardo A. & Domingues, Edson P. & Perobelli, Fernando S., 2002. "Regional effects of economic integration: the case of Brazil," Journal of Policy Modeling, Elsevier, vol. 24(5), pages 453-482, August.
    4. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    5. Edson Domingues & Eduardo Haddad & Fernando Perobelli, 2001. "Short-run Regional Effects of Alternative Strategies for Economic Integration: The Case of Brazil," ERSA conference papers ersa01p210, European Regional Science Association.
    6. Matthew W. Peter & Mark Horridge & G.A.Meagher & Fazana Naqvi & B.R.Parmenter, 1996. "The Theoretical Structure of MONASH-MRF," Centre of Policy Studies/IMPACT Centre Working Papers op-85, Victoria University, Centre of Policy Studies/IMPACT Centre.
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    Cited by:

    1. Rodriguez, U-Primo E., 2007. "State-of-the-Art in Regional Computable General Equilibrium Modelling with a Case Study of the Philippines," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(1).
    2. Ghaith, Ziad & Kulshreshtha, Suren & Natcher, David & Cameron, Bobby Thomas, 2021. "Regional Computable General Equilibrium models: A review," Journal of Policy Modeling, Elsevier, vol. 43(3), pages 710-724.
    3. Oliveira, Maria Aparecida Silva & Teixeira, Erly Cardoso, 2009. "Aumento da Oferta e Redução de Impostos nos Serviços de Infra-Estrutura na Economia Brasileira: uma Abordagem de Equilíbrio Geral," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 63(3), August.
    4. Mardones D., Cristián, 2012. "Chile: building a computable general equilibrium model with an application to the Bío Bío region," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    5. Haddad, Eduardo A. & Domingues, Edson P. & Perobelli, Fernando S., 2005. "Brazil-Argentina trade and its impacts in brazilian states," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 7, pages 113-137.

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    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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