Estimation of Regional Trade Substitution Elasticities for Brazil

Weslem R. Faria () and Eduardo Haddad

No 2011_06, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: This study estimates elasticities of regional trade in Brazil considering 110 products and 558 regions. For this, a large database was generated, becoming one of the most important stages in the trajectory of the study given the highly intensive procedures performed to obtain the final interregional trade flows. The elasticities were estimated using the Armington (1969) model, adapted from Bilgic’s (2002) suggestion regarding the definition of variables. Few studies were identified in the literature that aimed at estimating elasticities of substitution in regional trade, adding relative importance to this study. This fact may be related to the generation of the database because of the non-triviality in the numerous requirements and specific information of the economy. The estimation results presented, in general, coefficients with expected signs and the elasticities changed according to the types of products. Products related to agricultural and mining activities had less elastic coefficients than the coefficients of the service activities. The products related to industrial activities presented jointly an average coefficient equal to -1.775

Keywords: Armington elasticity; regional trade (search for similar items in EconPapers)
JEL-codes: R12 (search for similar items in EconPapers)
Date: 2011-11-11
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.repec.eae.fea.usp.br/documentos/Nereus062011.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spa:wpaper:2011wpecon06

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers, Department of Economics from University of São Paulo (FEA-USP) Contact information at EDIRC.
Bibliographic data for series maintained by Pedro Garcia Duarte ( this e-mail address is bad, please contact ).