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Mercosul and Regional Development in Brazil: A Gravity Model Approach

33 Pages Posted: 26 Jan 2005  

Paulo C. de Sá Porto

FEA-USP; Fundação Instituto de Pesquisas Contábeis Atuáriais e Financeiras (FIPECAFI)

Abstract

This paper assesses the impact of the Mercosul Preferential Trade Agreement on Brazil's regions by means of a gravity model, extended to include dummy variables for Mercosul and for a Brazilian region. The results show that the most significant regional impacts of Mercosul were on Brazil's Southern and Southeastern regions, whereas the North, Northeast and Center-West regions benefited much less from Mercosul in the period from 1990 to 1998. These results suggest that Mercosul may be aggravating regional disparities in Brazil.

Keywords: Mercosur, regional development, Gravity Model

JEL Classification: F15, R15

Suggested Citation

Porto, Paulo C. de Sá, Mercosul and Regional Development in Brazil: A Gravity Model Approach. Available at SSRN: https://ssrn.com/abstract=654423 or http://dx.doi.org/10.2139/ssrn.654423

Paulo C. de Sá Porto (Contact Author)

FEA-USP ( email )

São Paulo SP, 05508-900
Brazil
+ 55 11 3091-5870 (Phone)

Fundação Instituto de Pesquisas Contábeis Atuáriais e Financeiras (FIPECAFI)

Rua Maestro Cardim n. 1170
São Paulo, SP
Brazil

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