Publication:
Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs

Loading...
Thumbnail Image
Files in English
English PDF (1.87 MB)
487 downloads
English Text (495.56 KB)
363 downloads
Date
2008-07
ISSN
Published
2008-07
Author(s)
Editor(s)
Abstract
This report is designed to provide policymakers with estimates of the likely outcomes of an array of potential changes in transportation sector policy. To this end, the report uses a variety of economy-wide models to simulate alternative cost reductions and efficiency improvements. A detailed discussion of the various policies that may yield efficiency gains and cost reductions, as well as the specifics of their implementation, is beyond the scope of the report. The report is structured to move from a general description of Brazil's transportation sector to more specific analyses and simulations of individual and concerted changes. The first chapter sets the stage by providing a summary discussion of Brazil's transportation sector that includes both an overview of its historical development and a look at the recent evolution of government policies. In the second chapter, the fiscal and economic effects of shifts in public investment between alternative and competing transportation modes (roads, railroads, and waterways) are simulated using a fixed-price input-output model. The report's third chapter uses a computable general equilibrium (CGE) model to analyze the effects of cost reductions in land transportation on macroeconomic variables and income distribution. The fourth chapter uses a multiregional CGE model to simulate the effects of port efficiency improvements on regional economic development (including short- and long-term growth, employment, and welfare). The fifth chapter uses a similar model to analyze the national and state-level impacts of two federal highway projects in the state of Minas Gerais in terms of economic growth, regional inequalities, employment, and poverty. The last chapter summarizes the findings and provides conclusions and recommendations.
Link to Data Set
Citation
World Bank. 2008. Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs. © World Bank. http://hdl.handle.net/10986/8083 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Pakistan - Strategic Environmental, Poverty and Social Assessment of Trade and Transport Sector Reforms
    (Washington, DC, 2012-12) World Bank
    The Government of Pakistan's (GoP's) 2011 framework for economic growth seeks to place Pakistan on a sustained high economic growth path of 7 percent per year through measures to reduce the cost of doing business, improve the investment climate, and strengthen institutions. Trade and transport reforms are central to achieve the Framework's goal. The transport sector constitutes 10 percent of Pakistan's Gross Domestic Product (GDP) and provides 6 percent of the employment in the country. The sector plays an important role in linking other sectors in the economy, contributes to both domestic and international trade, and helps facilitate the spatial transformation occurring in Pakistan. However, present patterns in transport and trade logistics generate inefficiencies that are costing Pakistan's economy roughly 4-6 percent of GDP per year, which is a major constraint to the aspirations set out in the Framework. This analytical work on Strategic Environmental, Poverty, and Social Assessment (SEPSA) of trade and transport sector reforms examines poverty, social and environmental aspects associated with reforms that would increase the freight transport sector's productivity to meet the framework goals. it focused on the following areas: (i) SEPSA's methodology and aims; (ii) description of key challenges in Pakistan's freight transport sectors, including the road, trucking, railway, port, and aviation sectors, as well as trade and transport interventions and reforms proposed by the GoP and other stakeholders; (iii) identification of stakeholders, particularly the most vulnerable groups that could be affected by reforms aimed at increasing freight transport productivity, and analyzing the priority poverty issues associated with freight transport in Pakistan; (iv) identification jointly with stakeholders of priority social and environmental issues associated with freight transport, and analyzing such issues; (iv) examination of potential freight transportation social and environmental policy options for enhancing positive effects or reducing adverse effects associated with increases in freight transport productivity; and (v) identification of options to strengthen governance and the institutional capacity of agencies to manage the environmental, social and poverty priorities associated with Pakistan's freight transportation.
  • Publication
    Poland Transport Policy Note : Toward a Sustainable Land Transport Sector
    (Washington, DC, 2011-02) World Bank
    This Policy Note addresses strategic issues facing Poland s transport sector. Despite recent growth and integration within the European Union (EU), the overall quality and efficiency of transport infrastructure and services is still poor. About 40 percent of the national roads network, which carries the largest volume of people and goods among all transport modes, is in poor or unsatisfactory condition. The government and freight-logistics industry recognize the railway sector's low efficiency but not much has been achieved since the 2001 restructuring that separated the infrastructure company and operators. Low staff productivity - more than 40,000 employees managing 17,000 km of track - and almost no investment in signaling and IT systems modernization are still major constraints with important long-term consequences, affecting current railway performance. The scope of the Note is on land transport, mainly on national roads and railways with a priority on strategic issues requiring immediate actions. The Note addresses issues specific to single modes and those requiring policy-making coordination. The current chapter sets the study context and helps to understand better the drivers for the current state of the sector and policy orientation. This chapter explains the note s focus and its organization. Chapter 2 reviews the national road network with a focus on infrastructure efficiency and sustainability. Chapter 3 covers the railway sector with an emphasis on the various entities of the PKP Group and how the sector competes with roads. Chapter 4 addresses road safety in Poland with the human and economic costs of current situation. Chapter 5 looks at land transport emissions and derives most of its conclusions from a recent study on GHG emissions in Poland s transport sector. Chapter 6 reviews the current policy path and offers three alternative policy options. The direct and indirect impact of implementing each policy options is assessed and compared to the current situation with a focus on medium-term (2020) sustainability.
  • Publication
    Railways in Sub-Saharan Africa
    (World Bank, 2009-06-01) World Bank
    The changed role of rail in Africa over the last thirty years has seen it move from a situation where many of the systems were carrying a high share of their country's traffic to one in which their market share has declined, their assets have steadily deteriorated, their quality of service has reduced, and they are in many instances only a minor contributor to solving the transport problems of the continent. The first railways south of the Sahara were built in South Africa in the 1860's and 1870's, with lines heading inland from the ports at Cape Town and Durban. The networks in what were then Cape Province, Natal and Transvaal continued to develop but it was not until the turn of the twentieth century that large-scale railway development began in other parts of the continent. In almost every case, the pattern was the same, with isolated lines heading inland from a port to reach a trading centre or a mine, and a few branch lines then being built over a period of time. As almost all the lines were constructed under colonial administrations, many of the lines were state-owned but several were also constructed as concessions or, in the case of some mineral developments, by the mining company as an integral part of its mining operation. Nevertheless, the rhetoric accompanying some of the transactions suggests that many politicians believe, or want to believe, that the concession award will be the prelude to very substantial investments by the concessionaires, particularly in infrastructure. To date, this has barely materialized, with most infrastructure improvements being done with international financial institution (IFI) or donor funds. The main issue for most sub-Saharan railways is whether concessioning is just a temporary solution or whether some alternative approach is needed to ensure a long-term future for railway systems providing acceptable levels of service.
  • Publication
    Handshake, No. 12 (January 2014)
    (Washington, DC, 2014-01) International Finance Corporation
    This issue of the Handshake, IFCs quarterly journal on public-private partnerships, contains the following topics of interest: weighing the options: burn or bury?; waste and climate: supporting governments; community engagement: integrating Indias informal sector; an interview with the director of the documentary Trashed; and bonus: podcast with 2013 CNN hero on community cleanups.
  • Publication
    Handshake, No. 11 (October 2013)
    (International Finance Corporation, Washington, DC, 2013-10) International Finance Corporation
    This issue includes the following headings: donors: aid versus trade; investment: seeking strong partners; power: hydro heats up; water: sanitation solutions; and first person: African Development Bank President

Users also downloaded

Showing related downloaded files

  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.
  • Publication
    Digital Progress and Trends Report 2023
    (Washington, DC: World Bank, 2024-03-05) World Bank
    Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.
  • Publication
    The Container Port Performance Index 2023
    (Washington, DC: World Bank, 2024-07-18) World Bank
    The Container Port Performance Index (CPPI) measures the time container ships spend in port, making it an important point of reference for stakeholders in the global economy. These stakeholders include port authorities and operators, national governments, supranational organizations, development agencies, and other public and private players in trade and logistics. The index highlights where vessel time in container ports could be improved. Streamlining these processes would benefit all parties involved, including shipping lines, national governments, and consumers. This fourth edition of the CPPI relies on data from 405 container ports with at least 24 container ship port calls in the calendar year 2023. As in earlier editions of the CPPI, the ranking employs two different methodological approaches: an administrative (technical) approach and a statistical approach (using matrix factorization). Combining these two approaches ensures that the overall ranking of container ports reflects actual port performance as closely as possible while also being statistically robust. The CPPI methodology assesses the sequential steps of a container ship port call. ‘Total port hours’ refers to the total time elapsed from the moment a ship arrives at the port until the vessel leaves the berth after completing its cargo operations. The CPPI uses time as an indicator because time is very important to shipping lines, ports, and the entire logistics chain. However, time, as captured by the CPPI, is not the only way to measure port efficiency, so it does not tell the entire story of a port’s performance. Factors that can influence the time vessels spend in ports can be location-specific and under the port’s control (endogenous) or external and beyond the control of the port (exogenous). The CPPI measures time spent in container ports, strictly based on quantitative data only, which do not reveal the underlying factors or root causes of extended port times. A detailed port-specific diagnostic would be required to assess the contribution of underlying factors to the time a vessel spends in port. A very low ranking or a significant change in ranking may warrant special attention, for which the World Bank generally recommends a detailed diagnostic.
  • Publication
    Global Economic Prospects, June 2025
    (Washington, DC: World Bank, 2025-06-10) World Bank
    The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.
  • Publication
    Global Economic Prospects, January 2024
    (Washington, DC: World Bank, 2024-01-09) World Bank
    Note: Chart 1.2.B has been updated on January 18, 2024. Chart 2.2.3 B has been updated on January 14, 2024. Global growth is expected to slow further this year, reflecting the lagged and ongoing effects of tight monetary policy to rein in inflation, restrictive credit conditions, and anemic global trade and investment. Downside risks include an escalation of the recent conflict in the Middle East, financial stress, persistent inflation, weaker-than-expected activity in China, trade fragmentation, and climate-related disasters. Against this backdrop, policy makers face enormous challenges. In emerging market and developing economies (EMDEs), commodity exporters face the enduring challenges posed by fiscal policy procyclicality and volatility, which highlight the need for robust fiscal frameworks. Across EMDEs, previous episodes of investment growth acceleration underscore the critical importance of macroeconomic and structural policies and an enabling institutional environment in bolstering investment and long-term growth. At the global level, cooperation needs to be strengthened to provide debt relief, facilitate trade integration, tackle climate change, and alleviate food insecurity.