Measure and determinants of border effects of Brazilian states

Marie Daumal and Soledad Zignago

Papers in Regional Science, 2010, vol. 89, issue 4, 735-758

Abstract: Abstract This paper estimates the degree of trade integration between Brazilian states and the magnitude of barriers faced by their exporters in the 1990s. Using the border effects methodology, we show that the Brazilian market remains highly fragmented, although integration is increasing. In 1991 an average Brazilian state traded 37 times more with itself than with other Brazilian states. In 1999 the equivalent figure was 12. The state's international trade integration also increased over the period 1991 to 1999. Differences emerge between states. Internal and international border effects are high for Northern regions and low for Southern regions. We explore possible explanations for these findings. Resumen Este artículo estima el grado de integración comercial entre estados brasileños y la magnitud de los obstáculos que los exportadores encontraban en los años 90. Utilizando la metodología de los efectos de borde, mostramos que el mercado brasileño permanece altamente fragmentado, aunque la integración está aumentando. Un estado brasileño promedio comerciaba 37 veces más consigo mismo en 1991 que con otros estados brasileños. En 1999, la cifra equivalente era 12 veces. La integración comercial internacional de los estados aumentó también entre 1991 y 1999. Aparecen diferencias entre estados. Los efectos fronterizos internos e internacionales son elevados para las regiones del norte y bajos para las del sur. Exploramos las posibles explicaciones de estos hallazgos.

Date: 2010
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Citations: View citations in EconPapers (25)

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https://doi.org/10.1111/j.1435-5957.2009.00265.x

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Working Paper: Border Effects of Brazilian States (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:89:y:2010:i:4:p:735-758

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