Regional Inequality and Brazilian Constitutional Funds

There is considerable evidence to demonstrate that the regional development in developing countries shows high level of spatial concentration. The aim of this paper is to analyze the Brazilian case to identify if the constitutional funds for regional development(Constitucional Funds for the North - FNO and Constitucional Funds for the Center-West - FCO) have a positive impact on the regional inequality. These funds were created in 1989 in order to finance economic activities in the North and Center-West regions. Our results show that regional growth in Brazil over the last 10 years has not been affected by these constitutional funds. On the other way, public infra-structure, education and health have a positive relation with regional growth, which suggests that the public expending on those funds should be directed to these regional attributes.

Industrial Cores and Peripheries in Brazil

There is considerable evidence to demonstrate that the industrial localization in developing countries shows high level of spatial concentration, and the industrial decentralization is quite restricted to few isolated regions. The aim of this paper is to analyze the Brazilian case to identify the industrial cores and to find out whether Brazil follows this conventional view on industrial location in developing countries. This study is based on a database that merges two sets of data: the first describes 35000 industrial firms, and the second has information on the economic, social and urban structure of 5500 cities (year 2000). Based on these datasets, the industrial cores and their respective peripheries are identified, classified, and discussed. The main preliminary conclusions are: (1) Brazil has several industrial cores with different scales, structures, and regional level of integration; (2) there are regions with growing industrial peripheries that are strongly tied to the primary cores; these are what we called “industrial axes”; (3) however, we also identified regions that did not manage to build peripheries able to assimilate spillovers generated by its industrial centers; these are the “industrial islands”. Our main conclusion is: the Brazilian economic space is a mixed case. It is not a set of disconnected or isolated industrial islands, but it is still behind a full regional economic integration.

Interdependence Among the Brazilian States: An Input-Output Approach

The principal aim of this paper is to evaluate the interregional linkages based on the many-region input-output table for Brazilian regions, for the year 1996, elaborated by FIPE. This work utilizes the extraction method by Strassert, 1968 and Schultz, 1977 and modified by Dietzenbacher et al (1993). Instead of extracting one sector from a sector-based model, we will examine the effects of hypothetically extracting a region from a many-region model. The method calculates the “backward linkagesâ€; the “forward linkages†are obtained analogously from the matrix of allocation coefficients. The application of the methodology to the Brazilian inter-regional input-output tables shows that the states with high share in the Brazilian GDP presents a high degree of intra-regional interdependence both in terms of backward and forward linkages.

Regional impacts of trade liberalization strategies in Brazil

There is a great interest in free trade areas (FTA) in Brazil, predominantly in the context of a proposed Free Trade Area of the Americas (FTAA). In addition, a free trade area between MERCOSUR (the customs union involving Brazil, Argentina, Uruguay, and Paraguay) and the European Union has also been considered. In this paper, an interregional computable general equilibrium (CGE) model is used to analyze the long-run regional effects of alternative trade liberalization strategies on Brazil. The model provides a description of the Brazilian inter-regional economic system, divided into two regions - Sao Paulo and Other Regions in Brazil. One of its innovations is a full specification of foreign trade in both regions, capturing the complete structure of trade flows and import tariffs, linking the two Brazilian regions and a set of foreign markets. In this way, adequate simulations of tariff liberalization can be implemented for several possibilities of trade agreements.computable general equilibrium; regional models; trade policy; Brazil

Regional Impacts of Trade Liberalization Strategies in Brazil

There is a great interest in free trade areas (FTA) in Brazil, predominantly in the context of a proposed Free Trade Area of the Americas (FTAA). In addition, a free trade area between MERCOSUR (the customs union involving Brazil, Argentina, Uruguay, and Paraguay) and the European Union has also been considered. In this paper, an interregional computable general equilibrium (CGE) model is used to analyze the long-run regional effects of alternative trade liberalization strategies on Brazil. The model provides a description of the Brazilian inter-regional economic system, divided into two regions - Sao Paulo and Other Regions in Brazil. One of its innovations is a full specification of foreign trade in both regions, capturing the complete structure of trade flows and import tariffs, linking the two Brazilian regions and a set of foreign markets. In this way, adequate simulations of tariff liberalization can be implemented for several possibilities of trade agreements.

Industrial Cores and Peripheries in Brazil

There is considerable evidence to demonstrate that the industrial localization in developing countries shows high level of spatial concentration, and the industrial decentralization is quite restricted to few isolated regions. The aim of this paper is to analyze the Brazilian case to identify the industrial cores and to find out whether Brazil follows this conventional view on industrial location in developing countries. This study is based on a database that merges two sets of data: the first describes 35000 industrial firms, and the second has information on the economic, social and urban structure of 5500 cities (year 2000). Based on these datasets, the industrial cores and their respective peripheries are identified, classified, and discussed. The main preliminary conclusions are: (1) Brazil has several industrial cores with different scales, structures, and regional level of integration; (2) there are regions with growing industrial peripheries that are strongly tied to the primary cores; these are what we called "industrial axes”; (3) however, we also identified regions that did not manage to build peripheries able to assimilate spillovers generated by its industrial centers; these are the "industrial islands”. Our main conclusion is: the Brazilian economic space is a mixed case. It is not a set of disconnected or isolated industrial islands, but it is still behind a full regional economic integration

Regional Inequality and Brazilian Constitutional Funds

There is considerable evidence to demonstrate that the regional development in developing countries shows high level of spatial concentration. The aim of this paper is to analyze the Brazilian case to identify if the constitutional funds for regional development(Constitucional Funds for the North - FNO and Constitucional Funds for the Center-West - FCO) have a positive impact on the regional inequality. These funds were created in 1989 in order to finance economic activities in the North and Center-West regions. Our results show that regional growth in Brazil over the last 10 years has not been affected by these constitutional funds. On the other way, public infra-structure, education and health have a positive relation with regional growth, which suggests that the public expending on those funds should be directed to these regional attributes

Tax policy and re-location

Tax policy proposals in Brazil usually do not take into account effects at sub-national levels. Even when their spatial consequences are taken into account, the available information and analytical tools are not well suited to produce relevant insights to the policymaker. Thus, sound methodological frameworks, built upon consistent regional data, are necessary. This paper deals with important methodological aspects in tax policy/reform studies: tax base endogeneity, changes in relative prices, and sectoral and regional substitution. These aspects can be quantitatively evaluated through inter-regional computable general equilibrium models. Short-run and long-run spatial considerations can be rigorously assessed, producing relevant information to regional planning

INDUSTRIAL CORES AND PERIPHERIES IN BRAZIL

The aim of this paper is to identify the Brazilian industrial cores and peripheries. The study is based on two sets of data: the first describes 35600 industrial firms, and the second has information on the economic, social and urban structure of 5507 cities (2000). The conclusions are: (1) 84% of the industrial value-added (IVA) is concentrated in some type of industrial cluster; (2) 75% is in 15 spatial industrial agglomerations, which are industrial clusters with industrialized peripheries; (3) the are other 23 industrial cluster (local industrial agglomerations and industrial enclaves) with 9% of IVA; (4) the remaining 16% is geographically dispersed. Our main conclusion is: the Brazilian economic space is a mixed case. It is not a set of disconnected or isolated industrial islands, but it is still behind a full regional economic integration.