Brazil-Argentina trade and its impacts in brazilian states

• Main Authors: Eduardo A. Haddad, Edson P. Domingues, Fernando S. Perobelli
• Format: Article
• Language: English
• Published: AECR 2005-11-01
• Series: Investigaciones Regionales - Journal of Regional Research
• Subjects: Computable general equilibrium models; Commercial policy; Interregional trade; Regional analysis.
• Online Access: http://www.aecr.org/images/ImatgesArticles/2007/06%20Haddad.pdf

This paper aims to evaluate a number of spatial aspects of Brazil’s currentcommercial policy, emphasizing those relating to bilateral trade with Argentina,its main trading partner in Mercosur. A national computable general equilibrium modelwas developed and implemented (EFES-ARG) —integrated with an interstatetrade model—, in order to evaluate the sectoral/regional impacts of different tradestrategies towards Argentina. The analysis of the short-run regional aspects of Brazil-Argentina trade relations reveals a trend towards concentration of the level of economicactivity in the states of the Brazilian south and southeast.