Trade liberalization in Brazil - World Bank

A conversa é sempre a mesma: o Brasil ganharia muito com a liberalização comercial, mas a despeito disso nunca se abre. Por que? Só pode ser pela ação dos capitalistas predatórios do Brasil, que se opõem a essa simples medida de eficiência...

WORLD BANK POLICY RESEARCH WORKING PAPER ABSTRACTS

"Trade Liberalization and Integration of Domestic Output Markets in Brazil" 
World Bank Policy Research Working Paper No. 8600

JOSE GUILHERME REIS, World Bank
Email: jreis@worldbank.org
MARIANA IOOTTY, World Bank
Email: miootty@worldbank.org
JOSE SIGNORET, World Bank
Email: jsignoret@hotmail.com
TANJA GOODWIN, World Bank
Email: tanja.goodwin@gmail.com
MARTHA MARTINEZ LICETTI, World Bank
Email: mlicetti@worldbank.org
ALICE DUHAUT, World Bank
SOMIK V. LALL, World Bank
Email: slall1@worldbank.org

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.

"Trade Liberalization and Integration of Domestic Output Markets in Brazil"