Regional Aspects of Brazil's Trade Policy

Domínguez, Edson P.;
Perobelli, Fernando S.
Dec 2002
This paper aims to evaluate a number of spatial aspects of Brazils current trade policy, emphasizing those relating to economic integration in general, and bilateral trade with Argentina in particular. A national computable general equilibrium model was developed and implemented (EFES-ARG), in order to evaluate the sectoral impact of different trade integration strategies with specific economic countries/blocs. Moreover, EFES-ARG was integrated with an interstate trade model such that the national results obtained were regionalized. The analysis of the short-run regional aspects of Brazilian trade policy reveals a trend towards concentration of the level of economic activity in the states of the Brazilian south and southeast. The results draw attention to a phenomenon that has permeated the debate on the regional issue, namely the role of trade as an engine of growth.