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Poverty And Inequality Dynamics In Manaus: Legacy Of A Free Trade Zone?

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  • MARTA DOS REIS CASTILHO
  • MARTA MENÉNDEZ
  • AUDE SZTULMAN

Abstract

This study contributes to the literature on the social impacts of Special Economic Zones by analyzing the dynamics of poverty and inequality in the Brazilian state of Amazonas, where the Free Trade Zone of Manaus (FTZM) is located. Using census data, micro-decompositions and counterfactual simulations, we show that if labor income was a major driver of poverty and inequality declines for the municipality of Manaus in the 2000-2010 decade, non-labor income was far more important in the rest of the state of Amazonas. Our contrasting results illustrate both the benefits and limitations of the influence of the FTZM. A better targeting of both social policies and training programs could improve distributional outcomes in the whole area.
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Suggested Citation

  • Marta Dos Reis Castilho & Marta Menéndez & Aude Sztulman, 2018. "Poverty And Inequality Dynamics In Manaus: Legacy Of A Free Trade Zone?," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 212, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2016:212
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    Cited by:

    1. Possebom, Vitor Augusto, 2017. "Free Trade Zone of Manaus: An Impact Evaluation using the Synthetic Control Method," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 71(2), July.
    2. Louisiana Cavalcanti Teixeira, 2020. "Labor standards and social conditions in free trade zones: the case of the Manaus free trade zone," Post-Print hal-02997102, HAL.
    3. Teixeira, Louisiana Cavalcanti, 2020. "Labor standards and social conditions in free trade zones: The case of the Manaus free trade zone," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 14, pages 1-41.
    4. Louisiana Cavalcanti Teixeira, 2020. "Trade Liberalization, Income, and Multidimensional Deprivation in Brazil," Working Papers hal-02997100, HAL.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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