IMPACTS OF BORDER INDICATORS AND INTERNAL COMPETITIVENESS IN THE BRAZILIAN TOBACCO TRADE

Abstract

This paper aims to analyze the impact of border indicators and internal competiveness on international trade of tobacco. This study used the gravity model as a theoretical framework and the method used in the estimation of equations was the Poisson-Pseudo Maximum Likehood (PPML) model. For that, a sample of 78 importer’s Brazilian tobacco between 2006 to 2012 was used. The results show that border indicators of trade facilitation affected the international trade of Brazilian tobacco, highlighting the number of documents required to import and efficiency in government policies, which were statistically significant and showed the expected signal. The results for the distance, the TBT notifications, tariffs and GDP of importing countries are according to results found in the literature. It is concluded that international trade in Brazilian tobacco is affected both by border procedures as per indicators of internal competitiveness.