Regional Competition and Complementarity reflected in Relative Regional Dynamics and Growth of GSP: a Comparative Analysis of the Northeast of Brazil and the Midwest States of the U.S.

This chapter provides a brief economic historical background on the two regions such as Midwest States of the US and Brazilian Northeast, focusing on a general economic performance of the two regions and the participation of the states in the regional product. It presents the Dendrinos-Sonis model. The chapter provides the estimations of the model for the two regions together with their respective summary statistics, so that their results can be compared. It includes an analysis of the relation between the states' share and the interregional trade flows for the Midwest. Indiana and Wisconsin, participate with approximately 10" of the regions Gross State Products. The chapter presents the results of the Dendrinos-Sonis model for the Midwest states. The numeraire state is Wisconsin, which was chosen because, as the case of Piaui for the Northeast, since it has the smallest share in the region, although this share is still larger than 10".