The goal of this study was to estimate the domestic effect of trade among the Brazilian states, using data on forest sector activities according to the national classification of fiscal economic activities (CNAE-F). Thus, a general gravity model was applied taking into account the effects of comparative advantages resulting from the differences in factor endowments. The results indicated that market size has a positive effect on exports/imports ratio, except for the silviculture activity. The home market effect is greater on capital intensive activities although it varies across industries. Wood production was shown to be labor intensive. Based on the estimated coefficients, the forest sector activities in Brazil can be classified, in general, as capital intensive, producing goods necessary for consumption.
Interstate trade; domestic effect; gravity equation
