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Who in Brazil will gain from global trade reforms?

Author

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  • Azzoni, Carlos Roberto
  • Brooks, Jonathan
  • Guilhoto, Joaquim José Martins
  • McDonald, Scott

Abstract

The potential impacts of multilateral trade liberalisation on developing countries are the subject of numerous controversies. One particular concern is that Brazil, a major agricultural exporter and a country with one of the world’s most unequal income distributions, will reap a substantial share of the potential benefits to developing countries from agricultural trade reform, and that most of those benefits will go to large scale commercial farmers rather than the country’s smallholders. This claim is explored via a global general equilibrium model and a national model of Brazil containing multiple agricultural and non-agricultural households. Brazil is found to account for nearly one-half of all the benefits to developing countries deriving from global agricultural trade reform. These gains are associated with improvements in the welfare of each group and a lower incidence of poverty. Large scale producers gain more than smallholders as they tend to be relatively specialised in export products, but there are important gains to agricultural employees, who are relatively poor, and to urban households, who benefit from the expansion of the agro-food sector. Overall, there is no discernible impact on income inequality, and no evidence that the gains to commercial farmers occur at the expense of poorer households.

Suggested Citation

  • Azzoni, Carlos Roberto & Brooks, Jonathan & Guilhoto, Joaquim José Martins & McDonald, Scott, 2007. "Who in Brazil will gain from global trade reforms?," MPRA Paper 54510, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:54510
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    References listed on IDEAS

    as
    1. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889, December.
    2. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr & Angelo Gurgel, 2014. "Trade Policy and Poverty Reduction in Brazil," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 10, pages 225-253, World Scientific Publishing Co. Pte. Ltd..
    3. Ferreira FIlho, Joaquim Bento de Souza & Horridge, Mark, 2005. "The Doha Round, Poverty and Regional Inequality in Brazil," Conference papers 331332, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Gloria González-Rivera & Steven M. Helfand, 2001. "The Extent, Pattern, and Degree of Market Integration: A Multivariate Approach for the Brazilian Rice Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 576-592.
    5. McDonald, Scott, 2005. "The PROVIDE Project Standard Computable General Equilibrium Model: Version 2," Technical Paper Series 15625, PROVIDE Project.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. McDonald, Scott. & Jansen, Marion. & Uexküll, Erik von., 2012. "The impact of crisis-related changes in trade flows on employment, incomes, regional and sectoral development in Brazil," ILO Working Papers 994689023402676, International Labour Organization.
    2. Bosello, Francesco & Eboli, Fabio & Parrado, Ramiro & Rosa, Renato, 2010. "REDD in the Carbon Market: A general equilibrium analysis," Conference papers 331978, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. repec:ilo:ilowps:468902 is not listed on IDEAS
    4. Jonathan Brooks & Alan Matthews, 2015. "Trade Dimensions of Food Security," OECD Food, Agriculture and Fisheries Papers 77, OECD Publishing.

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    More about this item

    Keywords

    Brazil; trade liberalisation; poverty; inequality; agriculture;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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