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Trade Liberalization, Inequality and Poverty in Brazilian States

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  • Marta Castilho

    (Universidade Federal Fluminense - Universidade Federal Fluminense)

  • Marta Menéndez

    (DIAL - Développement, institutions et analyses de long terme - Institut de recherche pour le développement [IRD], UP9 - Université Paris 9, Dauphine - Université Paris IX - Paris Dauphine, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA))

  • Aude Sztulman

    (LEDa - DIAL - Laboratoire d'Economie de Dauphine - Equipe Economie de la mondialisation et du développement - Université Paris IX - Paris Dauphine)

Abstract

This paper studies the impact of globalization on household income inequality end poverty using detailed microdata across Brazilian states from 1987 to 2005. Results suggest that the Brazilian states more exposed to tariff cuts experienced smaller reductions in household poverty and inequality. Contrasting results emerge when we disaggregate into rural and uraban areas within states: trade liberalization contributes to growth in poverty and inequality in urban areas and may be linked to evidence indicating that state poverty and inequality in Brazil decrease with rising export exposure and increase with import penetration.

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Bibliographic Info

Paper provided by HAL in its series PSE Working Papers with number halshs-00967356.

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Date of creation: 28 Mar 2014
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Handle: RePEc:hal:psewpa:halshs-00967356

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Keywords: Trade Liberalization ; Poverty and inequality ; Latin America ; Brazilian states;

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References

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Citations

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Cited by:
  1. Gaddis, Isis & Pieters, Janneke, 2012. "Trade Liberalization and Female Labor Force Participation: Evidence from Brazil," IZA Discussion Papers 6809, Institute for the Study of Labor (IZA).
  2. Paolo Giordano & Kun Li, 2012. "An Updated Assessment of the Trade and Poverty Nexus in Latin America," IDB Publications 79119, Inter-American Development Bank.
  3. Kis-Katos, Krisztina & Sparrow, Robert, 2013. "Poverty, Labour Markets and Trade Liberalization in Indonesia," IZA Discussion Papers 7645, Institute for the Study of Labor (IZA).

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