Spillover effects of rural credit: a CGE application for Brazilian regions

Talita Pinto, Cicero Zanetti De Lima, Angelo Gurgel and Erly Teixeira

No 332761, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This research aims to determine the spillover effects of rural credit promoted by the interest rate equalization policy (ETJ) on the Brazilian regions. This study uses the General Equilibrium Analysis Project for the Brazilian Economy (PAEG) to perform the analytical simulations. The results suggest that food, chemical, plastic and rubber, textile, and wood and furniture industries are indirectly positively affected by ETJ policy in Southern, Southeastern and Midwestern Brazil. The effects on service industry is small for all regions. For poor regions like the Northern and Northeastern, the results suggest a better public policy planning to maximize the direct and indirect effects.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332761

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