Trade Liberalization and Industrial Concentration:Evidence from Brazil

Giovanni Facchini

No 126, Econometric Society 2004 Latin American Meetings from Econometric Society

Abstract: This paper applies an endogenous lobby formation model to explain the extent of trade protection granted to Brazilian manufacturing industries during the 1988-1994 trade liberalization episode. Using a panel data set covering this period, we find that even in an environment in which a major regime shift has been introduced,more concentrated sectors have been able to obtain policy advantages, that lead to a reduction in international competition. The importance of industry structure appears to be substantial: In our baseline speci.cation, an increase in concentration by 20% leads to an increase in protection by 5%-7%.

Keywords: lobby formation; tariffs (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2004-08-11
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http://repec.org/esLATM04/up.26242.1081861486.pdf (application/pdf)

Related works:
Journal Article: Trade liberalization and industrial concentration: Evidence from Brazil (2005)
Working Paper: Trade liberalization and industrial concentration: evidence from Brazil (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ecm:latm04:126

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