TRANSPORTATION COSTS, INCREASING RETURNS AND REGIONALGROWTH: AN INTERREGIONAL CGE ANALYSIS

摘要: The purpose of this paper was threefold. First, we presented a flexible analytical framework, based on sound and consistent economic theory data, in order to assess the likely state/sectoral/income effects policy changes Brazil. This is first fully operational interstate CGE model implemented for Brazilian economy, previous work by author associates. Among features embedded modeling scale economies transportation costs provides an innovative way dealing explicitly with theoretical issues related integrated regional systems. Results seemed reinforce need better specifying spatial interactions interregional models. Second, illustrate capability module, set simulations, which evaluated impacts decrease costs, accordance recent developments Rather than providing critical evaluation debate, intended emphasize structural such policies. Third, diagnostics suggested make more in-depth analysis trade flows between states, potentially leading generalizations regarding type involved, its composition through time as economy develops, implications these differences coordination implementation development In address issue gave proper place taking into account specified system accounts specially developed calibrating model.