Sources of comparative advantages in Brazil

Beatriz Muriel Hernández and Cristina Terra

No 658, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

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 technological changes that might have occurred over time, and those turned out to be significant. Both methods yield the same results: the Brazilian international 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.

Date: 2007-12-01
New Economics Papers: this item is included in nep-cse
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Related works:
Journal Article: Sources of Comparative Advantages in Brazil (2009)
Working Paper: Sources of Comparative Advantages in Brazil (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:epgewp:658

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