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Abstract

The pwpose of this study is to assess quantitatively the impact of a tariff cut on agricultural pexformance and intersect.oral and in1erregional disparities in Brazil. A general equilibriwn model was built, nonlinear and dynamic, in which the price mechanism plays an important role. The model is disaggregated in such a way as to permit the analysis of the agricultural sector within the context in which it is inserted. Special attention is given to the effects of urban protection on growth and welfare variables, and stroog emphasis is put on the role played by rural-urban interactions. The simulation of the model shows that tariffs constitute a burden to lite rural sector as lhey benefit urban activities. Proleclion, through rural-urban links, also exacerbates regional disequilibria as they worsen the situation of the poor, agricultural Northeast region.

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