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Consequences Of Trade Liberalization On Poverty And Income Distribution In Brazil

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Author Info
Bittencourt, Mauricio V.L.
Kraybill, David L.
Larson, Donald W.

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Abstract

This study evaluates the regional short run impacts of reduction in import tariffs in Brazil on poverty and distribution of income related to recent free trade area agreements. Results show that trade can reduce inter-regional income inequality, but poor urban households lose with trade liberalization. In order to compensate welfare losses for the poor, this study designs and evaluates a combination of trade and tax policies, which effectively contributes to improve welfare for poor urban households.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21128.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21128

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Keywords: International Relations/Trade;

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  1. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr,David & Gurgel, Angelo, 2003. "Regional, multilateral, and unilateral trade policies on MERCOSUR for growth and poverty reduction in Brazil," Policy Research Working Paper Series 3051, The World Bank. [Downloadable!]
  2. Thurlow, James & van Seventer, Dirk Ernst, 2002. "A standard computable general equilibrium model for South Africa," TMD discussion papers 100, International Food Policy Research Institute (IFPRI). [Downloadable!]
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    Other versions:
  6. de Melo, Jaime, 1988. "Computable general equilibrium models for trade policy analysis in developing countries: A survey," Journal of Policy Modeling, Elsevier, vol. 10(4), pages 469-503. [Downloadable!] (restricted)
  7. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February. [Downloadable!] (restricted)
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  12. Carneiro, Francisco Galrao & Arbache, Jorge Saba, 2003. "The Impacts of Trade on the Brazilian Labor Market: A CGE Model Approach," World Development, Elsevier, vol. 31(9), pages 1581-1595, September. [Downloadable!] (restricted)
  13. Konan, Denise Eby & Maskus, Keith E., 2000. "Joint trade liberalization and tax reform in a small open economy: the case of Egypt," Journal of Development Economics, Elsevier, vol. 61(2), pages 365-392, April. [Downloadable!] (restricted)
    Other versions:
  14. Gelan, Ayele, 2002. "Trade liberalisation and urban-rural linkages: a CGE analysis for Ethiopia," Journal of Policy Modeling, Elsevier, vol. 24(7-8), pages 707-738, November. [Downloadable!] (restricted)
  15. Davies, Rob & Rattso, Jorn & Torvik, Ragnar, 1998. "Short-Run Consequences of Trade Liberalization: A Computable General Equilibrium Model of Zimbabwe," Journal of Policy Modeling, Elsevier, vol. 20(3), pages 305-333, June. [Downloadable!] (restricted)
  16. Danny M. Leipziger & Claudio Frischtak & Homi Kharas & John F. Normand, 1997. "Mercosur: Integration and Industrial Policy," The World Economy, Blackwell Publishing, vol. 20(5), pages 585-603, 08. [Downloadable!] (restricted)
  17. John Whalley, 1984. "Trade Liberalization among Major World Trading Areas," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262231204.
  18. Stéphane Mussard & Françoise Seyte & Michel Terraza, 2003. "Decomposition of Gini and the generalized entropy inequality measures," Economics Bulletin, Economics Bulletin, vol. 4(7), pages 1-6. [Downloadable!]
  19. Löfgren, Hans & Robinson, Sherman & Thurlow, James, 2002. "Macro and micro effects of recent and potential shocks to copper mining in Zambia," TMD discussion papers 99, International Food Policy Research Institute (IFPRI). [Downloadable!]
  20. Haddad, Eduardo A. & Domingues, Edson P. & Perobelli, Fernando S., 2002. "Regional effects of economic integration: the case of Brazil," Journal of Policy Modeling, Elsevier, vol. 24(5), pages 453-482, August. [Downloadable!] (restricted)
  21. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September. [Downloadable!] (restricted)
  22. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 2003. "Trade liberalization, poverty and efficient equity," Journal of Development Economics, Elsevier, vol. 71(1), pages 97-128, June. [Downloadable!] (restricted)
  23. Rodrik, Dani, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter. [Downloadable!] (restricted)
  24. Flores, Renato Jr., 1997. "The gains from MERCOSUL: A general equilibrium, imperfect competition evaluation," Journal of Policy Modeling, Elsevier, vol. 19(1), pages 1-18, February. [Downloadable!] (restricted)
  25. Cattaneo, Andrea & Ojeda, Raul A. Hinojosa- & Robinson, Sherman, 1999. "Costa Rica trade liberalization, fiscal imbalances, and macroeconomic policy: a computable general equilibrium model," The North American Journal of Economics and Finance, Elsevier, vol. 10(1), pages 39-67. [Downloadable!] (restricted)
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