IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa05p700.html
   My bibliography  Save this paper

Trade Liberalization and Regional Inequality - Do Transportation Costs Impose a Spatial Poverty Trap?

Author

Listed:
  • Eduardo Haddad

    ()

  • Fernando Perobelli

    ()

Abstract

This paper focuses on the spatial impacts of barriers to trade, in the form of tariffs, in a national economy. More specifically, we are concerned with the spatial impediments for the internal transmission of the potential benefits of trade liberalization, in the form of high transportation costs that the more remote regions face. The strategy adopted in this research utilizes a spatial CGE model integrated to a geo-coded transportation model to evaluate shifts in the economic center of gravity and regional specialization in the Brazilian economy due to further liberal tariff policies. Comparative advantage is grasped through the use of differential regional production technologies; geographical advantage is verified through the explicit modeling of the transportation services, as well as increasing returns associated to agglomeration economies; and cumulative causation appears through the operation of internal and external multipliers and interregional spillover effects.

Suggested Citation

  • Eduardo Haddad & Fernando Perobelli, 2005. "Trade Liberalization and Regional Inequality - Do Transportation Costs Impose a Spatial Poverty Trap?," ERSA conference papers ersa05p700, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa05p700
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/700.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. AGENOR Pierre-Richard & FERNANDES Reynaldo & HADDAD Eduardo & VAN DER MENSBRUGGHE Dominique, "undated". "Analyzing the Impact of Adjustment Policies on the Poor: An IMMPA Framework for Brazil," EcoMod2003 330700002, EcoMod.
    2. Dixon, Peter B. & Parmenter, B.R., 1996. "Computable general equilibrium modelling for policy analysis and forecasting," Handbook of Computational Economics,in: H. M. Amman & D. A. Kendrick & J. Rust (ed.), Handbook of Computational Economics, edition 1, volume 1, chapter 1, pages 3-85 Elsevier.
    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. Guilhoto, Joaquim José Martins & Hasegawa, Marcos & Lopes, Ricardo Luis, 2002. "A estrutura teórica do modelo inter-regional para a economia brasileira - MIBRA
      [The theoretical structure of inter regional model for the Brazilian economy - MIBRA]
      ," MPRA Paper 54019, University Library of Munich, Germany.
    5. Venables, Anthony J, 1998. "The Assessment: Trade and Location," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 1-6, Summer.
    6. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr,David & Gurgel, Angelo, 2003. "Regional, multilateral, and unilateral trade policies on MERCOSUR for growth and poverty reduction in Brazil," Policy Research Working Paper Series 3051, The World Bank.
    7. Jacek Cukrowski & Manfred M. Fischer, 2000. "Theory of Comparative Advantage: Do Transportation Costs Matter?," Journal of Regional Science, Wiley Blackwell, vol. 40(2), pages 311-322.
    8. Kashif S. Mansori, 2003. "The Geographic Effects of Trade Liberalization with Increasing Returns in Transportation," Journal of Regional Science, Wiley Blackwell, vol. 43(2), pages 249-268.
    9. Baer, Werner & Maloney, William, 1997. "Neoliberalism and income distribution in Latin America," World Development, Elsevier, vol. 25(3), pages 311-327, March.
    10. Filho, Leonardo Campos, 1998. "Unilateral Liberalisation and Mercosul: Implications for Resource Allocation," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 52(4), October.
    11. Domingues, Edson P. & Haddad, Eduardo A. & Hewings, Geoffrey, 2008. "Sensitivity analysis in applied general equilibrium models: An empirical assessment for MERCOSUR free trade areas agreements," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(2), pages 287-306, May.
    12. Bröcker, Johannes, 1998. "Spatial effects of transport infrastructure: The role of market structure," Discussion Papers 5/98, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    13. 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.
    14. Hans M. Amman & David A. Kendrick, . "Computational Economics," Online economics textbooks, SUNY-Oswego, Department of Economics, number comp1.
    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. 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. Plassmann, Florenz & Feltenstein, Andrew, 2016. "How large do multi-region models need to be?," Journal of Policy Modeling, Elsevier, vol. 38(1), pages 138-155.
    3. De Miguel, Carlos J. & Ludeña, Carlos & Schuschny, Andrés Ricardo & Durán Lima, José Elías, 2009. "Trade and sustainable development: spatial distribution of trade policies impacts on agriculture," Medio Ambiente y Desarrollo 138, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Ludena, Carlos E. & Schuschny, Andres & de Miguel, Carlos & Duran Lima, Jose E., 2009. "Georeferenced Assessment of Trade Liberalization Effects on Agriculture in Ecuador," 2009 Conference, August 16-22, 2009, Beijing, China 50556, International Association of Agricultural Economists.
    5. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Other Operational Studies 8083, The World Bank.

    More about this item

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wiw:wiwrsa:ersa05p700. 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: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    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 CitEc recognized a reference but did not link an item in RePEc 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 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.