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Brazil-Argentina trade and its impacts in brazilian states

Author(s): Eduardo A. Haddad | Edson P. Domingues | Fernando S. Perobelli

Journal: Investigaciones Regionales
ISSN 1695-7253

Issue: 7;
Start page: 113;
Date: 2005;
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Keywords: Computable general equilibrium models | Commercial policy | Interregional trade | Regional analysis.

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.
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