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The effect of import competition on Brazil’s manufacturing labor market in the 2000s: Are imports from China different?

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  • Lourenço S. Paz

Abstract

This study uses the increased openness of the Brazilian economy in the 2000s to assess the impacts of trade on its manufacturing sector. Using household data, this study’s results imply that a higher import penetration reduces the employment level in manufacturing and fosters labor reallocation across industries. The magnitude of these effects changes according to the Chinese share of these imports. I find no evidence that trade exposure affected the shares of self-employed and informal workers. Finally, the new macroeconomic policy implemented by the Brazilian government in 2008 altered the way in which trade exposure affected manufacturing labor market outcomes.

Suggested Citation

  • Lourenço S. Paz, 2018. "The effect of import competition on Brazil’s manufacturing labor market in the 2000s: Are imports from China different?," The International Trade Journal, Taylor & Francis Journals, vol. 32(1), pages 76-99, January.
    • Handle: RePEc:taf:uitjxx:v:32:y:2018:i:1:p:76-99
    DOI: 10.1080/08853908.2017.1389323
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    Cited by:

    1. Lourenco S. Paz, 2021. "How does import competition impact job type?," Economics Bulletin, AccessEcon, vol. 41(3), pages 2063-2020.
    2. Muftah Faraj & Murad Bein, 2022. "Sustainability of Local Labour Market in South Africa: The Implications of Imports Competition from China," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    3. Sofia Torreggiani & Antonio Andreoni, 2019. "Dancing with dragons: Chinese import penetration and the performances of manufacturing firms in South Africa," WIDER Working Paper Series wp-2019-63, World Institute for Development Economic Research (UNU-WIDER).
    4. Lourenço S. Paz, 2022. "The China Shock Impact on Labor Informality: The Effects on Brazilian Manufacturing Workers," Economies, MDPI, vol. 10(5), pages 1-19, May.
    5. Torreggiani, Sofia & Andreoni, Antonio, 2023. "Rising to the challenge or perish? Chinese import penetration and its impact on growth dynamics of manufacturing firms in South Africa," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 199-212.
    6. Lourenço S. Paz & Kul Prasad Kapri, 2019. "The Effects of the Chinese Imports on Brazilian Manufacturing Workers," Economies, MDPI, vol. 7(3), pages 1-22, August.
    7. Lourenco Paz, 2022. "Does age modulate the impact of import competition on job type?," Economics and Business Letters, Oviedo University Press, vol. 11(4), pages 161-171.

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