Reducing transport costs could boost Brazil's growth but widen regional inequality
This study looks at how trade between different regions in Brazil affects the country's economy. To do this, the researchers used a detailed economic model that breaks down Brazil into its 27 states and 36 sectors. By running simulations, they found that reducing transportation costs between states can boost national growth and global competitiveness. However, this trading also has the downside of potentially increasing inequality between rich and poor regions in Brazil. So, while trade between wealthier states helps the country overall, it can make the gap between different regions larger.