Spillover effects of rural credit: a CGE application for Brazilian regions


This research aims to determine the spillover effects of rural credit promoted by the interest rate equalization policy (ETJ) on the Brazilian regions. This study uses the General Equilibrium Analysis Project for the Brazilian Economy (PAEG) to perform the analytical simulations. The results suggest that food, chemical, plastic and rubber, textile, and wood and furniture industries are indirectly positively affected by ETJ policy in Southern, Southeastern and Midwestern Brazil. The effects on service industry is small for all regions. For poor regions like the Northearn and Northeastearn, the results suggest a better public policy planning to maximize the direct and indirect effects.

In 19th Annual Conference on Global Economic Analysis GTAP
Cicero Lima
Cicero Lima
Research Economist