Mercosul and regional development in Brazil: a gravity model approach
DOI:
https://doi.org/10.11606/1980-53573215pcspKeywords:
Mercosul, regional development and Gravity ModelAbstract
This paper assesses the impact of the Mercosul Preferential Trade Agreement onBrazil’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 onBrazil’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 inBrazil.
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Copyright (c) 2002 Paulo C. de Sá Porto
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