Trade liberalization and industrial concentration: evidence from Brazil

Pedro Ferreira and Giovanni Facchini

No 531, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

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 specification, an increase in concentration by 20% leads to an increase in protection by 5%-7%.

Date: 2004-03-01
New Economics Papers: this item is included in nep-com
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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:fgv:epgewp:531

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