STRUCTURAL CHANGE I N BRAZILIAN INTERNATIONAL TRADE: INTERINDUSTRY TRADE AND INTRA-INDUSTRY TRADE

Abstract

The aim of this paper is to analyse some aspects of the structural change in the Brazilian international trade in the last decades and to make some considerations about the expected adjustment in response to trade liberalisation. The results show that the participation of interindustry trade has decreased and intra-industry trade has increased, mainly in capital goods industry (machinery and transport equipment) and intermediate goods (chemicals). In 1967,92% of manufactured imports were interindustry trade net importers. This trade has decreased but still remain at high level, around 41% in 1987, The inefficient industries of these group are expected to suffer some adjustment. On the other hand, the interindustry trade net exporters are expected to be stimulate by the process of trade liberalisation The participation of these trade has increased from 40% in 1967 to 66% in 1987.