Interregional Trade, Structural Changes and Regional Inequality

Inácio Araújo and Eduardo Haddad

No 7-2024, TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS)

Abstract: This study explores changes in regional inequality and examines distinct adjustment patterns among Brazilian states investigating the role played by interregional trade during economic stagnation. We combine structural decomposition analysis with observed demographic changes to identify the main drivers of change in regional inequality. By focusing on different dimensions of integration, we show that changes in intra-regional and international integration were the main drivers of the observed reduction in regional inequality. However, interregional trade was critical to drive changes in regional value-added, acting as an absorber of structural changes for the richer states.

Keywords: Interregional trade; Domestic trade; Regional disparity; Location of economic activities; Economic recession; Input-output analysis. (search for similar items in EconPapers)
JEL-codes: C67 F14 O18 R15 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2024-08-02
New Economics Papers: this item is included in nep-geo, nep-int and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ris:nereus:2024_007

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