Sources of Comparative Advantages in Brazil

Beatriz Muriel Hernández and Cristina Terra

No 2008-12, Thema Working Papers from THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS

Abstract: Based on the Heckscher-Ohlin-Vanek model, this paper investigates relative factor abundance in Brazil, as revealed by its international trade. We study two different time periods: one characterized by high trade barriers (1980 to 1985) and the trade liberalization period (1990 to 1995). Two alternative methodologies are used: the estimation of factor intensity regressions on net exports and the direct computation of factor content in net exports. In the factor intensity regression, we incorporate techno- logical changes that might have occurred over time, and those turned out to be significant. Both methods yield the same results: the Brazilian in- ternational trade reveals relative abundance in capital, land and unskilled labor, and scarcity in skilled labor, with qualitatively equivalent results for the two time periods studied.

JEL-codes: F11 F14 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-int
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Related works:
Journal Article: Sources of Comparative Advantages in Brazil (2009)
Working Paper: Sources of comparative advantages in Brazil (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2008-12

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