The Doha Round, poverty, and regional inequality in Brazil

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The Doha Round, poverty, and regional inequality in Brazil

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Filho, Joaquim Bento de Souza Ferreira
Horridge, Mark

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Jonathan Mark Horridge

Abstract

This paper addresses the potential effects of the Doha round of trade negotiations on poverty and income distribution in Brazil, using an applied general equilibrium (AGE) and micro-simulation model of Brazil tailored for income distribution and poverty analysis. Of particular importance is the fact that the representative household hypothesis is replaced by a detailed representation of households. The model distinguishes 10 different labor types and has 270 different household expenditure patterns. Income can originate from 41 different production activities (which produce 52 commodities), located in 27 different regions in the country. The AGE model communicates to a micro-simulation model that has 112,055 Brazilian households and 263,938 adults. Poverty and income distribution indices are computed over the entire sample of households and persons, before and after the policy shocks. Model results show that even important trade policy shocks, such as those applied in this study, do not generate dramatic changes in the structure of poverty and income distribution in the Brazilian economy. The simulated effects on poverty and income distribution are positive, but rather small. The benefits are concentrated in the poorest households.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3701.

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Date of creation: 01 Sep 2005
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Handle: RePEc:wbk:wbrwps:3701

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This paper has been announced in the following NEP Reports:

NEP-ALL-2005-12-14 (All new papers)
NEP-INT-2005-12-14 (International Trade)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Arndt, Channing, 2005. "The Doha Trade Round and Mozambique," Policy Research Working Paper Series 3717, The World Bank. [Downloadable!]
Goldbaum, Sergio & Coelho, Allexandro Mori & Lima, Maria Lúcia L. M. Pádua & Cury, Samir, 2006. "Impacts of the Proposals For Tariff Reductions in Non-Agricultural Market Access (Nama)," Textos para discussÃ£o 155, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil). [Downloadable!]
Boussard, Jean-Marc, 2006. "Consequences of price volatility in evaluating the benefits of liberalisation," MPRA Paper 4467, University Library of Munich, Germany. [Downloadable!]
Hertel, Thomas W. & Winters, L. Alan, 2005. "Poverty impacts of a WTO agreement : synthesis and overview," Policy Research Working Paper Series 3757, The World Bank. [Downloadable!]
Hielke Buddelmeyer & Nicolas Hérault & Guyonne Kalb & Mark van Zijll de Jong, 2009. "Linking a Dynamic CGE Model and a Microsimulation Model: Climate Change Mitigation Policies and Income Distribution in Australia," Melbourne Institute Working Paper Series wp2009n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
Allexandro Mori Coelho & Maria Lúcia L. M. Pádua Lima & Samir Cury & Sergio Goldbaum, 2006. "Impacts Of The Proposals For Tariff Reductions In Nonagricultural Goods (Nama)," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 121, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]

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