São Francisco River Transposition Project: Socio‐economic impacts in Brazilian Northeast semi‐arid region

The aim of this study is to assess the socio‐economic impacts of the São Francisco River Integration Project (PISF). In order to do that, a dynamic inter‐regional computable general equilibrium model is used, called TERM‐NEPISF. An increase in investments and in the total productivity of factors in the agricultural sectors was simulated. In general, the results reveal that greater investment and increase productivity has positive effects on GDP, employment, and household consumption, with rural workers and lower‐income households benefited the most. Furthermore, the results show a negative variation of the Gini index for almost all regions, expressing reduction of regional disparities.