DESEMPENHO COMERCIAL DA INDÚSTRIA DE MAQUINAS E IMPLEMENTOS AGRÍCOLAS NO BRASIL

Abstract

We analyze Brazil's external trade in agricultural machineries since the openness period (the 1990s), rather distinct from the capital goods sectors, and identify three main sources for the observed comparative advantages and overall trade pattern: "local externalities, transport-cost and differences in product quality". These relationships are worked out by means of stylized theoretical models. In the empirical analysis, we examine the trade adjustment during the openness and, then, the pattern and direction of trade. We find out: (a) a notice able effect of transport-cost upon trade volume, pattern and direction, (a) a vertical-quality competition, matched to farmer's in come, and (c) the existence of local externalities as given by this industry's geographical bias towards the old agricultural centers. This bias also indicates entry barriers linked to fixed costs.