Trade Liberalization and Integration of Domestic Output Markets in Brazil
This paper describes how different policy distortions have been impeding better integration of Brazil's external and internal product markets and discusses how these distortions have prevented domestic firms from benefiting from multiple sourc...
| Main Authors: | , , , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/848981538569408470/Trade-Liberalization-and-Integration-of-Domestic-Output-Markets-in-Brazil http://hdl.handle.net/10986/30509 |
| Summary: | This paper describes how different
policy distortions have been impeding better integration of
Brazil's external and internal product markets and
discusses how these distortions have prevented domestic
firms from benefiting from multiple sources of efficiency
gains. The paper first focuses on the costs of barriers to
global integration, followed by an overview of policy
induced stringencies hampering domestic integration. Drawing
from general and partial equilibrium analyses, the paper
also provides evidence of potential impacts of removing some
of those distortions and discusses policy options to promote
better allocation of resources across the economy. The main
conclusion of the paper is that Brazil could gain
significantly from opening to foreign trade. Yet, for Brazil
to take full advantage of the opportunities that external
integration offers, domestic markets also need to function
better, so it is key to ensure that the removal of external
barriers to integration is coordinated with the removal of
internal distortions to domestic market integration. |
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