Comparative Advantage of Rio De Janeiro

Discussion Paper No. 900

16 Pages Posted: 26 Mar 2003

See all articles by Carlos Henrique Leite Corseuil

Carlos Henrique Leite Corseuil

Institute of Applied Economic Research (IPEA)

Samuel D. Pessoa

Graduate School of Economics at Fundacao Getulio Vargas (EPGE/FGV); University of Pennsylvania

Date Written: August 2002

Abstract

Economic downturn of Rio de Janeiro in last decades is an stylized fact in regional economics in Brazil. People worry if Sao Paulo is attracting jobs that are lost in Rio. In this paper we investigate the economic foundations of this problem. We first derive an analytical framework and hence do some empirical analysis. Using sectorial data we look for whether the relative size of production is related to relative productivity. The results confirm the relation above for almost all sectors. The exceptions are chemistry industry and community services. While in the first case our framework indicates that the production should be more concentrated in Rio, the reverse happens in the second case, which is a sign of larger demand for this non-tradable service.

Note: The Downloadable document is written in Portuguese.

Keywords: Comparative advantages, regional allocation

JEL Classification: R12, R32

Suggested Citation

Leite Corseuil, Carlos Henrique and Pessoa, Samuel D., Comparative Advantage of Rio De Janeiro (August 2002). Discussion Paper No. 900, Available at SSRN: https://ssrn.com/abstract=336161 or http://dx.doi.org/10.2139/ssrn.336161

Carlos Henrique Leite Corseuil

Institute of Applied Economic Research (IPEA) ( email )

Av. Presidente Antonio Carlos 51
14 andar, Castelo
RJ 20020-010 Rio de Janeiro
Brazil
+55 21 3804-8000 (Phone)
+55 21 2240-1920 (Fax)

Samuel D. Pessoa (Contact Author)

Graduate School of Economics at Fundacao Getulio Vargas (EPGE/FGV) ( email )

Praia de Botafogo 190/1125, CEP
Rio de Janeiro RJ 22253-900
Brazil
+55 21 559 5833 (Phone)
+55 21 552 4898 (Fax)

University of Pennsylvania ( email )

Department of Economics
Philadelphia, PA 19104-6370
United States

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