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Trade Liberalization, Inequality, and Poverty in Brazilian States

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  • Castilho, Marta
  • Menéndez, Marta
  • Sztulman, Aude

Abstract

This paper studies the impact of globalization on household income inequality and poverty using detailed microdata across Brazilian states from 1987 to 2005. Results suggest that trade liberalization contributes to growth in poverty and inequality in urban areas and may be linked to reductions in inequality (possibly poverty) in rural areas. In terms of observed integration into world markets, we find evidence indicating that in Brazil both state poverty and inequality decrease with rising export exposure but state poverty increases with import penetration.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 4 ()
Pages: 821-835

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Handle: RePEc:eee:wdevel:v:40:y:2012:i:4:p:821-835

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: trade liberalization; poverty and inequality; Latin America; Brazilian states;

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Cited by:
  1. Kis-Katos, Krisztina & Sparrow, Robert, 2013. "Poverty, Labour Markets and Trade Liberalization in Indonesia," IZA Discussion Papers 7645, Institute for the Study of Labor (IZA).
  2. Gaddis, Isis & Pieters, Janneke, 2012. "Trade Liberalization and Female Labor Force Participation: Evidence from Brazil," IZA Discussion Papers 6809, Institute for the Study of Labor (IZA).
  3. Paolo Giordano & Kun Li, 2012. "An Updated Assessment of the Trade and Poverty Nexus in Latin America," IDB Publications 79119, Inter-American Development Bank.

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