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Productive Structure and Income Distribution: the Brazilian Case

Author

Listed:
  • Guilherme Moreira
  • Leandro De Oliveira Almeida
  • Joaquim Jose Martins Guilhoto
  • Carlos Roberto Azzoni

Abstract

This study deals with the impacts of structural changes on income distribution in Brazil in the period 1992-2002. A Pure Leontief Model and a Leontief-Miazawa Model were utilized to portray the structure of the economy in both years, and to perform counterfactual simulations on some important changes occurring during the period. The methodology allowed for the identification of the high and low inequality sectors in both years, and to their contribution to the increasing inequality during the period. It is interesting to notice that some sectors with low internal inequality ended-up provoking increased global inequality through their interaction pattern with other sectors in the economy,and through the consumption structure. The results also indicate that the change in sectoral shares in the period contributed to diminishing inequality. Therefore, the causes for increasing inequality remains within the distribution of wages within the sectors.

Suggested Citation

  • Guilherme Moreira & Leandro De Oliveira Almeida & Joaquim Jose Martins Guilhoto & Carlos Roberto Azzoni, 2006. "Productive Structure and Income Distribution: the Brazilian Case," ERSA conference papers ersa06p152, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa06p152
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    References listed on IDEAS

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    1. Green, Francis & Dickerson, Andy & Saba Arbache, Jorge, 2001. "A Picture of Wage Inequality and the Allocation of Labor Through a Period of Trade Liberalization: The Case of Brazil," World Development, Elsevier, vol. 29(11), pages 1923-1939, November.
    2. 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.
    3. Kenichi Miyazawa, 1960. "Foreign Trade Multiplier, Input-Output Analysis and the Consumption Function," The Quarterly Journal of Economics, Oxford University Press, vol. 74(1), pages 53-64.
    4. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G. & Gurgel, Angelo, 2002. "Regional, Multilateral and Unilateral Trade Policies of MERCOSUR for Growth and Poverty Reduction in Brazil," Conference papers 331003, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. R. Azzoni, Carlos & J. M. Guilhoto, Joaquim & A. Haddad, Eduardo & G. Silveira, Fernando & A. Menezes, Tatiane & M. Hasegawa, Marcos, 2005. "Commodity Price Changes and Their Impacts on Poverty in Developing Countries: the Brazilian Case," TD NEREUS 2-2005, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    6. Guilhoto, J. J. M. & Sesso Filho, U. A., 2005. "Estimação da Matriz Insumo-Produto a Partir De Dados Preliminares das Contas Nacionais [Estimation of input-output matrix using preliminary data from national accounts]," MPRA Paper 38212, University Library of Munich, Germany.
    7. Guilhoto, Joaquim José M. & Fonseca, Manuel Alcino R. Da, 1987. "Uma análise dos efeitos econômicos de estratégias setoriais," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 41(1), January.
    8. Guilhoto, Joaquim J. M. & Hewings, Geoffrey J. D. & Sonis, Michael & Guo, Jiemin, 2001. "Economic structural change over time: Brazil and the United States compared," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 703-711, August.
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    Cited by:

    1. Correa Mautz, Felipe, 2016. "Pobreza, desigualdad y estructura productiva en ciudades: evidencia desde Chile usando datos de panel," Desarrollo Productivo 40842, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Moreira, Guilherme Renato Caldo & Ichihara, Silvio Massaru & Guilhoto, Joaquim José Martins, 2007. "O impacto do aumento das exportações de álcool sobre a distribuição de renda do Brasil [The impact of the increased exports of ethanol on the distribution of income of the Brazil]," MPRA Paper 31517, University Library of Munich, Germany.
    3. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Publications - Reports 8083, The World Bank Group.

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    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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