The Impact of International Trade Flows on Economic Growth in Brazilian States
Daumal, Marie; Ozyurt, Selin (2011), The Impact of International Trade Flows on Economic Growth in Brazilian States, Review of Economics and Institutions, 2, 1, p. article 5. http://dx.doi.org/10.5202/rei.v2i1.5
TypeArticle accepté pour publication ou publié
Journal nameReview of Economics and Institutions
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Abstract (EN)This paper explores the impact of trade openness on the economic growth of Brazilian states according to their initial income level. This empiri- cal study covers 26 Brazilian states over the period 1989-2002. Growth rates of Brazilian states are modeled as dependent on international trade flows and a set of control variables such as initial income level, human capital, private and public physical capital, growth rate of labor force and a number of inter- action terms with trade openness. This empirical analysis relies on dynamic growth regressions, using the system GMM estimator. The results indicate that trade openness is more beneficial to states with a high level of initial per capita income and therefore contributes to increased regional dispari- ties in Brazil. In addition, trade openness favors more industrialized states, well-endowed in human capital, rather than states whose economic activity is mainly based on agriculture and farming. These results have important policy implications since achieving balanced territorial development has be- come a priority for the Brazilian federal government over the last few decades.
Subjects / KeywordsEquation de croissance; Estimateur GMM; Etats brésiliens; Brazilian States; GMM Estimator; Growth Equation; International Trade; Commerce international
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