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Trade Policy and Poverty Reduction in Brazil

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

Abstract

Using a multi-region CGE model, we evaluate the regional, multilateral and unilateral trade policy options of MERCOSUR from the perspective of the welfare of all potential partners. In Brazil, we focus on poverty impacts. We find that the poorest households in Brazil experience percentage gains of between 1.5 to 5.5 percent of their consumption, which is about three to four times the average 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, thereby helping the poor.

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Bibliographic Info

Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 276.

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Date of creation: Dec 2004
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Handle: RePEc:chb:bcchwp:276

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Cited by:
  1. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Doha Merchandise Trade Reform: What’s at Stake for Developing Countries?," CEPR Discussion Papers 5156, C.E.P.R. Discussion Papers.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. Edson Paulo Domingues & Kênia Barreiro de Souza, 2012. "The Welfare Impacts of Changes in the Brazilian Domestic Work Market," One Pager 180, International Policy Centre for Inclusive Growth.
  7. 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.
  8. 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.
  9. 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.
  10. Carlos Azzoni & Jonathan Brooks & Joaquim Guilhoto & Scott McDonald, 2007. "Who in Brazil Will Gain from Global Trade Reforms?," The World Economy, Wiley Blackwell, vol. 30(10), pages 1568-1593, October.
  11. Jensen, Jesper & Tarr, David G., 2011. "Deep trade policy options for Armenia: The importance of trade facilitation, services and standards liberalization," Economics Discussion Papers 2011-33, Kiel Institute for the World Economy.
  12. repec:hal:journl:halshs-00145424 is not listed on IDEAS

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