Estimação das Elasticidades de Substituição do comércio regional do Brasil [Estimations of Elasticities of regional trade in Brazil]

Weslem Rodrigues Faria and Eduardo Haddad
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Weslem Rodrigues Faria: UFJF

Nova Economia, 2014, vol. 24, issue 1, 141-168

Abstract: This study estimates elasticities of regional trade in Brazil considering 110 products and 558 regions. The elasticities were estimated using the Armington (1969) model, adapted from Bilgic’s (2002) suggestion regarding the definition of variables. Few studies were identified in the literature that aimed at estimating elasticities of substitution in regional trade, adding relative importance to this study. This fact may be related to the generation of the database because of the non-triviality in the numerous requirements and specific information of the economy. The estimation results presented, in general, coefficients with expected signs and the elasticities change according to the types of products. Products related to agricultural and mining activities had less elastic coefficients than the coefficients of the service activities. The products related to industrial activities presented jointly na average coefficient equal to -1.775.

Keywords: Armington elasticities; regional trade; model consistent estimation; Brazilian economy (search for similar items in EconPapers)
JEL-codes: C80 F14 R12 (search for similar items in EconPapers)
Date: 2014
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