ECONOMIC IMPACTS OF AGRICULTURAL CARGO TRANSPORTATION COST TO BRAZIL

Abstract

This work relates transportation cost of agricultural products to the Brazilian economy. Given the importance of agriculture for country’s economy, logistics represents a link of communication and product flow. The methodology used was scenarios projection by a computable general equilibrium model, regionalized for Brazil. Through efficiency shocks and freight variation, a positive impact on GDP and welfare was noted for all macroregions and Brazil as a whole. However, it cannot be inferred that transportation cost is a limiting factor for the country’s economic and regional development.