Abstract In this study the impact of transportation improvements on Brazilian interregional commodity flows are considered. The decreasing friction of distance is measured by two variants of the gravity model. First, distance coefficients are calculated for trade among all states in 1942 and 1962. Second, distance coefficients for each state's imports are calculated separately and then related to state per capita income, for the year, 1962. Both the time-series and cross-section results indicate a significant diminution in the friction of distance in the course of Brazilian development. The degree to which trade has integrated the national economy is assessed by the convergence of agricultural prices. Not only have interregional price differentials tended to diminish, but regional price structures are becoming more similar. The interrelation of these price structures provides a method of regionalizing the Brazilian space-economy.
The influence of transportation improvements on interregional trade in Brazil
Transportation ; 6 , 4
1977
Article (Journal)
English
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