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Economic Impacts of Pre-Salt on a Regional Economy: The Case of Espirito Santo, Brazil

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  • Eduardo Haddad
  • Ana Carolina Giuberti

Abstract

Brazilian government has recently confirmed the discovery of a huge oil and natural gas field in the pre-salt layer off the country's southeastern coast. It has been said that the oil fields can boost Brazil's oil production, and turn the country into one of the largest oil producers in the world. The fields are spatially concentrated in the coast area of a few Brazilian states, that may be directly benefited by oil production. This paper uses an interregional CGE model to assess the impacts of pre-salt on the economy of the State of Espirito Santo, a region already characterized by an economic base heavily reliant on natural resources. We focus our analysis on the structural economic impacts, both in the short run, medium run and long run.

Suggested Citation

  • Eduardo Haddad & Ana Carolina Giuberti, 2011. "Economic Impacts of Pre-Salt on a Regional Economy: The Case of Espirito Santo, Brazil," ERSA conference papers ersa10p156, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa10p156
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    Cited by:

    1. Grant Mark Nülle & Graham A. Davis, 2018. "Neither Dutch nor disease?—natural resource booms in theory and empirics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 35-59, May.
    2. Moraes, Maria Juliana Iorio de & Gurgel, Angelo & Paltsev, Sergey, 2015. "Is the pre-salt oil competitive? Economic and environmental long run impacts from the incentives to the pre-salt – a general equilibrium approach," Conference papers 332642, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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