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Abstract

The objective of this paper is to determine the long-term effects of rural credit on agricultural production, trade and competitiveness (through prices) in the Brazilian regions. The simulations were performed applying the General Equilibrium Analysis Project of the Brazilian Economy (PAEG). The results suggest that the rural credit policy represents an important stimulus to the entire Brazilian agribusiness chains given the positive impacts on agriculture production, exports, and expansion of industries with strong linkages with the agricultural sector. Also, the policy is associated with agricultural competitiveness gains (through prices) in foreign markets.

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