Submitted by Heron Rios (heronrios@hotmail.com) on 2016-07-01T19:11:04Z No. of bitstreams: 1 Dissertacao_Heron.pdf: 563884 bytes, checksum: cd598c114b3e74baead49d968928dd82 (MD5) / Approved for entry into archive by GILSON ROCHA MIRANDA (gilson.miranda@fgv.br) on 2016-07-04T14:27:22Z (GMT) No. of bitstreams: 1 Dissertacao_Heron.pdf: 563884 bytes, checksum: cd598c114b3e74baead49d968928dd82 (MD5) / Approved for entry into archive by Maria Almeida (maria.socorro@fgv.br) on 2016-07-13T12:00:04Z (GMT) No. of bitstreams: 1 Dissertacao_Heron.pdf: 563884 bytes, checksum: cd598c114b3e74baead49d968928dd82 (MD5) / Made available in DSpace on 2016-07-13T12:00:39Z (GMT). No. of bitstreams: 1 Dissertacao_Heron.pdf: 563884 bytes, checksum: cd598c114b3e74baead49d968928dd82 (MD5) Previous issue date: 2016-03-31 / The Import Substitution Process in Latin Amer ica was an attempt to enhance GDP growth and productivity by rising trade barriers upon capital-intensive products. Our main goal is to analyze how an increase in import tariff on a particular type of good affects the production choices and trade pattern of an economy. We develop an extension of the dynamic Heckscher-Ohlin model – a combination of a static two goods, two-factor Heckscher-Ohlin model and a two-sector growth model – allowing for import tariff. We then calibrate the closed economy model to the US. The results show that the economy will produce less of both consumption and investment goods under autarky for low and high levels of capital stock per worker. We also find that total GDP may be lower under free trade in comparison to autarky.