Transportation Costs and the Spatial Structure of Brazilian Interstate Commerce

Posted: 23 Jan 2001

See all articles by Newton de Castro

Newton de Castro

Universidade Federal do Rio de Janeiro (UFRJ) - Faculdade de Administracao e Ciencias Contabeis - FACC

Larry Carris

Universidade Federal do Rio de Janeiro (UFRJ)

Bruno A. Rodrigues

Universidade Federal do Rio de Janeiro (UFRJ) - Faculdade de Administracao e Ciencias Contabeis - FACC

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Abstract

The objective of this paper is to provide a model of the Brazilian interstate commerce with emphasis on the derived demand for transportation and the impact of logistics cost on the spatial pattern of internal trade. The effects of transportation and logistics cost are assessed both in terms of the volume and the distribution of trade, according to the level of economic development and sectoral specialization of each state.

The estimation of the model tests alternative specifications for the functional form and the distribution of the error term. The results show that a model based on the Poisson distribution is more appropriate that the log-normal model usually employed in spatial interaction analysis. A flexible specification of the functional form also provides improvements in the statistical adjustment of the model. The selected specification and estimation process of the model exhibits interesting results with respect to the elasticities of commerce with respect to the production structure and transportation costs. It reveals that impact of a comprehensive toll road program is more intense on the trade of agricultural states and between more distant states.

JEL Classification: R4, R42, F1

Suggested Citation

de Castro, Newton and Carris, Larry and Rodrigues, Bruno A., Transportation Costs and the Spatial Structure of Brazilian Interstate Commerce. Available at SSRN: https://ssrn.com/abstract=255959

Newton De Castro (Contact Author)

Universidade Federal do Rio de Janeiro (UFRJ) - Faculdade de Administracao e Ciencias Contabeis - FACC ( email )

Av. Pasteur 250
Rio de Janeiro, 22290-240
Brazil
+55 21 240 5006 (Phone)
+55 21 541 8148 (Fax)

Larry Carris

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Rua Sao Francisco Xavier, 524
Rio de Janeiro RJ 21949, 23890000
Brazil

Bruno A. Rodrigues

Universidade Federal do Rio de Janeiro (UFRJ) - Faculdade de Administracao e Ciencias Contabeis - FACC

Av. Pasteur 250
Rio de Janeiro, 22290-240
Brazil

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