Economic impacts of tariff change on domestic operations of the Brazilian cabotage freight sector (2013-2025)

Abstract

The aim of this paper is to analyze the objective to discuss the long turn economic impacts of tariff change on domestic operations of the Brazilian cabotage freight sector, between 2013-2025, as well as explore some analytic potential of the dynamic Computable General Equilibrium (CGE) model which captures increasing returns to scale and imperfect markets. The main findings of this application indicated that tariff policies promote positive long turn effects on GDP growth, exports, and investments. The sectorial projections of such policies suggest a negative effects on cabotage sector and positive effects on sectors’ production which are intensive in cabotage.