The objective of this paper was to analyze, explicitly, the effect of tariffs and non-tariff barriers (NTBs) on the Brazilian exports and its contribution to the border effect. It was used a gravity model with a procedure to calculate the tariff equivalent of non-tariff barriers. In the simplest model, estimated border effect showed that Brazilian states trade on average 33 times more among themselves than with the rest of the world. Explicit introduction of tariffs in the model showed that exports suffered a greater reduction than the increase on tariffs. The isolation of the influence of tariffs on the border-effect indicated that Brazilian states would still trade 26 times more among themselves. The calculated tariff equivalent of non-tariff barriers showed that those NTBs correspond to a tariff ad valorem of approximately 29%.
Tariffs; non-tariff barriers; border effect; gravity model
