The fiscal war and the Brazilian insterstate trade in a sector analysis
DOI:
https://doi.org/10.5902/141465093463Keywords:
Interstate trade, Fiscal war, Gravity model, Border effects, Domestic biasAbstract
The present study had as main objective to analyze, through a gravity model, the influence of the “fiscal war” in the Brazilian interstate trade at the aggregate and sectoral levels. It was still intended to measure the impact of variables such as adjacency among states, and the “domestic bias” on the trade of different sectors of the economy. Besides the basic gravitational variables, the proposed model used a dummy variable to measure the effect of adjacency, and a variable to express the “fiscal war”. The results about the “fiscal war” showed that it doesn’t behave as a barrier to trade in any productive sector and even to the aggregated trade. Calculations to the “domestic bias” indicated that capital intensity increases from the primary to the industrial sector, and, that the product differentiation also increases in agreement with the capital intensification used in each sector
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