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Author Volpe Martincus, Christian
Source EconStor
Content type Text
Publisher ZEI
File Format PDF
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword Economic Integration ♦ Fiscal Competition ♦ Location Patterns ♦ Manufacturing Industries ♦ Brazil ♦ Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ♦ Fiscal Policies and Behavior of Economic Agents: Firm ♦ State and Local Taxation, Subsidies, and Revenue ♦ Size and Spatial Distributions of Regional Economic Activity ♦ Real Estate Markets, Spatial Production Analysis, and Firm Location: General ♦ Regional Development Planning and Policy
Abstract Do trade integration and fiscal competition contribute to shape the economic landscape? The answer is yes. This paper uses a theoretical model and an econometric analysis of Brazilian regional manufacturing employment data over the period 1990-1998 to address this question. Brazil is a natural case study because this country liberalized trade during the 1990s and their sub-national governments engaged in a fiscal dispute. Econometric results show that trade liberalization has had an impact on spatial developments and this effect is increasing over time. Moreover, subsidies also exert an influence, but their relative importance is falling.
Part of series ZEI working paper xB 15-2004
Learning Resource Type Article
Publisher Date 2004-01-01
Publisher Place Bonn
Rights Holder