Effect of physical integration in regions next to Interoceanica: an economic analysis for Brazil and Peru

Abstract

This study aims to prove empirically the objectives of physical integration, specifically economic aspects. This topic becomes relevant under current conditions, where the search for new ways to strengthen bilateral relations and trade can serve as a debate for the growth of less developed regions. The results indicate a non-homogenous benefit of the physical integration linked to the greater commercial flow between the two countries under study. The border effect shows a positive effect for the regions of Brazil and negative for the regions of Peru.