Free Trade and Transportation Infrastructure in Brazil: Towards an Integrated Approach

50th Annual North American Meeting of the Regional Science Association International, November 2003

27 Pages Posted: 21 Mar 2014

See all articles by Paulo Resende

Paulo Resende

Fundação Dom Cabral

Joaquim Guilhoto

University of Sao Paulo

Geoffrey J.D. Hewings

University of Illinois at Urbana-Champaign

Date Written: 2003

Abstract

In the development of models analyzing the impacts of free trade agreements between countries or regions within countries, relatively little attention has been paid to potential limitations imposed by transportation infrastructure. In free trade blocks such as those represented by the European Union or the USA and Canada part of NAFTA, the implicit assumption of little or no impact imposed by transportation infrastructure may be justified. However, in the case of MERCOSUL in South America, this assumption may need to be challenged. In this paper, an illustration of a potential approach to this problem will be illustrated with reference to Brazil. Attention will be devoted to the way in which the potential gains from free trade within MERCOSUL were mapped onto a highway transportation network to identify the creation of additional bottlenecks and point out the need of highway improvements once the impacts of economic development result in higher transportation costs due to such bottlenecks.

Keywords: free trade, Brazil, transport

JEL Classification: R4, F13

Suggested Citation

Resende, Paulo and Guilhoto, Joaquim José Martins and Hewings, Geoffrey J.D., Free Trade and Transportation Infrastructure in Brazil: Towards an Integrated Approach (2003). 50th Annual North American Meeting of the Regional Science Association International, November 2003. Available at SSRN: https://ssrn.com/abstract=2412158 or http://dx.doi.org/10.2139/ssrn.2412158

Paulo Resende

Fundação Dom Cabral ( email )

Avenida Princesa Diana 760, Alphaville
Nova Lima, 34000000
Brazil

Joaquim José Martins Guilhoto (Contact Author)

University of Sao Paulo ( email )

Av. Prof. Luciano Gualberto, 908
FEA2
Sao Paulo, 05508-010
Brazil
+ 55 011 3091-5870 (Phone)
+ 55 011 3813-4743 (Fax)

Geoffrey J.D. Hewings

University of Illinois at Urbana-Champaign ( email )

318 Davenport Hall
607 S. Mathews
Urbana, IL 61801-3671
United States
217-333-4740 (Phone)

HOME PAGE: http://real.illinois.edu

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