Brazil is a country of continental proportions whose gross domestic product is unevenly distributed among its various regions. The impact of general domestic economic policies has often been perceived as not being regionally neutral, but as reinforcing the geographic concentration of economic...

The paper questions the widely accepted view according to which distorted factor prices are the main determinant of rural unemployment and under‐employment in Brazil. It is argued that more than distorted relative prices, the very limited technological alternatives available, together with the...