Trade Costs on Exports from Brazilian Regions: Analysis through the Gravitational Panel in the Period 2006 to 2015

Abstract

The objective of this article is to analyze the effects of trade costs on exports of agricultural and manufactured products from the regions of Brazil, from 2006 to 2015. To measure trade costs proxies were used in the literature, such as the total bilateral cost between Brazil and its trading partners, these costs were disaggregated into tariff and non-tariff costs, these costs are calculated by the methodology of the Novy inverted equation and obtained from the Economic and Social Commission for Asia and the Pacific (ESCAP) website. The other proxies refer to the number of documents and time in days required to market products, obtained from Doing Business. The increased gravitational model of trade estimated through the PPML - Fixed Effects is used, using a sample of 86 trade partners, which represent about 90% of exports from the Brazilian regions, in the period from 2006 to 2015. The main results obtained showed different effects of trade costs on sectors and on regions, it was also found that tariff costs had little effect on exports in most regions.