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Trade Policy and Poverty Reduction in Brazil

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Author Info

  • Glenn W. Harrison
  • Thomas F. Rutherford
  • David G. Tarr
  • Angelo Gurgel

Abstract

A multiregion computable general equilibrium model is used to evaluate the regional, multilateral, and unilateral trade policy options of Mercosur from the perspective of the welfare of all potential partners in several proposed agreements. The focus for Brazil is on poverty impacts. The results show that the poorest households in Brazil experience gains of 1.5--5.5 percent of their consumption, which are about three to four times the average gains for Brazil. Protection in Brazil favors capital-intensive manufacturing relative to unskilled labor-intensive agriculture and manufacturing. So trade liberalization raises the return to unskilled labor relative to capital and disproportionately helps the poor. Copyright 2004, Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal The World Bank Economic Review.

Volume (Year): 18 (2004)
Issue (Month): 3 ()
Pages: 289-317

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Handle: RePEc:oup:wbecrv:v:18:y:2004:i:3:p:289-317

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Cited by:
  1. Rutherford, Thomas & Tarr, David, 2008. "Regional household and poverty effects of Russia's accession to the world trade organization," Policy Research Working Paper Series 4570, The World Bank.
  2. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "The impact on Russia of WTO accession and the Doha agenda : the importance of liberalization of barriers against foreign direct investment in services for growth and poverty reduction," Policy Research Working Paper Series 3725, The World Bank.
  3. Edson Paulo Domingues & Kênia Barreiro de Souza, 2012. "The Welfare Impacts of Changes in the Brazilian Domestic Work Market," Working Papers 96, International Policy Centre for Inclusive Growth.
  4. Ernesto Valenzuela & Kym Anderson & Thomas Hertel, 2008. "Impacts of trade reform: sensitivity of model results to key assumptions," International Economics and Economic Policy, Springer, vol. 4(4), pages 395-420, February.
  5. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2005. "Doha Merchandise Trade Reform: WhatÂ’s at Stake for Developing Countries?," Centre for International Economic Studies Working Papers 2005-16, University of Adelaide, Centre for International Economic Studies.
  6. Fida Karam & Bernard Decaluwé, 2007. "Les effets de la migration sur le chômage marocain : une analyse en équilibre général calculable statique," Post-Print halshs-00145424, HAL.
  7. Tarr, David G., 2013. "Putting Services and Foreign Direct Investment with Endogenous Productivity Effects in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, Elsevier.
  8. Richard G. Harris & Peter Robertson, 2009. "Trade, Wages And Skill Accumulation In The Emerging Giants," Economics Discussion / Working Papers 09-19, The University of Western Australia, Department of Economics.
  9. Jensen, Jesper & Tarr, David G., 2010. "Regional trade policy options for Tanzania : the importance of services commitments," Policy Research Working Paper Series 5481, The World Bank.
  10. Tarr, David G., 2012. "Putting services and foreign direct investment with endogenous productivity effects in computable general equilibrium models," Policy Research Working Paper Series 6012, The World Bank.
  11. Jensen, Jesper & Tarr, David G., 2012. "Deep trade policy options for Armenia: The importance of trade facilitation, services and standards liberalization," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(1), pages 1-54.
  12. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "Poverty effects of Russia's WTO accession : modeling"real"households and endogenous productivity effects," Policy Research Working Paper Series 3473, The World Bank.

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