Trade Liberalization and Integration of Domestic Output Markets in Brazil

Reis, Jose Guilherme ; Iootty, Mariana ; Signoret, Jose ; Goodwin, Tanja ; Licetti, Martha ; Duhaut, Alice ; Lall, Somik

World Bank, Washington, DC

关键词: PRODUCTIVITY;    TRADE LIBERALIZATION;    MARKET INTEGRATION;    MARKET ACCESS;    EFFICIENCY GAINS;   

DOI  :  10.1596/1813-9450-8600
RP-ID  :  WPS8600

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper describes how differentpolicy distortions have been impeding better integration ofBrazil's external and internal product markets anddiscusses how these distortions have prevented domesticfirms from benefiting from multiple sources of efficiencygains. The paper first focuses on the costs of barriers toglobal integration, followed by an overview of policyinduced stringencies hampering domestic integration. Drawingfrom general and partial equilibrium analyses, the paperalso provides evidence of potential impacts of removing someof those distortions and discusses policy options to promotebetter allocation of resources across the economy. The mainconclusion of the paper is that Brazil could gainsignificantly from opening to foreign trade. Yet, for Brazilto take full advantage of the opportunities that externalintegration offers, domestic markets also need to functionbetter, so it is key to ensure that the removal of externalbarriers to integration is coordinated with the removal ofinternal distortions to domestic market integration.