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Trade Liberalization, Inequality, and Poverty in Brazilian States

  • Castilho, Marta
  • Menéndez, Marta
  • Sztulman, Aude

This paper studies the impact of globalization on household income inequality and poverty using detailed microdata across Brazilian states from 1987 to 2005. Results suggest that trade liberalization contributes to growth in poverty and inequality in urban areas and may be linked to reductions in inequality (possibly poverty) in rural areas. In terms of observed integration into world markets, we find evidence indicating that in Brazil both state poverty and inequality decrease with rising export exposure but state poverty increases with import penetration.

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File URL: http://www.sciencedirect.com/science/article/pii/S0305750X11002403
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Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 4 ()
Pages: 821-835

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Handle: RePEc:eee:wdevel:v:40:y:2012:i:4:p:821-835
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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  1. Orazio Attanasio & Pinelopi Goldberg & Nina Pavcnik, 2003. "Trade Reforms and Wage Inequiality in Colombia," NBER Working Papers 9830, National Bureau of Economic Research, Inc.
  2. Thibault Fally & Rodrigo Paillacar & Cristina Terra, 2010. "Economic geography and wages in Brazil: Evidence from micro-data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00429718, HAL.
  3. Goldberg, Pinelopi Koujianou & Pavcnik, Nina, 2003. "Trade, Wages and the Political Economy of Trade Protection: Evidence from the Colombian Trade Reforms," CEPR Discussion Papers 3877, C.E.P.R. Discussion Papers.
  4. Pavcnik, Nina & Blom, Andreas & Goldberg, Pinelopi & Schady, Norbert, 2003. "Trade liberalization and labor market adjustment in Brazil," Policy Research Working Paper Series 2982, The World Bank.
  5. Ferreira, Francisco H.G. & Leite, Phillippe G. & Ravallion, Martin, 2010. "Poverty reduction without economic growth?: Explaining Brazil's poverty dynamics, 1985-2004," Journal of Development Economics, Elsevier, vol. 93(1), pages 20-36, September.
  6. Eric V. Edmonds & Nina Pavcnik & Petia Topalova, 2010. "Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 42-75, October.
  7. Stephen Redding & Anthony J. Venables, 2001. "Economic geography and international inequality," LSE Research Online Documents on Economics 3714, London School of Economics and Political Science, LSE Library.
  8. Harrison, Ann & McLaren, John & McMillan, Margaret S., 2010. "Recent findings on trade and inequality:," IFPRI discussion papers 1047, International Food Policy Research Institute (IFPRI).
  9. Muendler, Marc-Andreas, 2007. "Labor Reallocation in Response to Trade Reform," University of California at San Diego, Economics Working Paper Series qt3cm38535, Department of Economics, UC San Diego.
  10. Denis Cogneau & Jérémie Gignoux, 2005. "Earnings Inequalities and Educational Mobility in Brazil over Two Decades," Ibero America Institute for Econ. Research (IAI) Discussion Papers 121, Ibero-America Institute for Economic Research.
  11. Gordon H. Hanson, 1998. "Market Potential, Increasing Returns, and Geographic Concentration," NBER Working Papers 6429, National Bureau of Economic Research, Inc.
  12. Kannebley Júnior, Sérgio & Prince, Diogo de & Camargo Scarpelli, Maíra, 2010. "Hysteresis e o comércio exterior de produtos industrializados brasileiros," Textos para discussão 253, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
  13. Ann Harrison, 2007. "Globalization and Poverty: An Introduction," NBER Chapters, in: Globalization and Poverty, pages 1-32 National Bureau of Economic Research, Inc.
  14. Ann Harrison & Margaret McMillan, 2007. "On the links between globalization and poverty," Journal of Economic Inequality, Springer, vol. 5(1), pages 123-134, April.
  15. Jorge Saba Arbache & Andy Dickerson & Francis Green, 2004. "Trade Liberalisation and Wages in Developing Countries," Economic Journal, Royal Economic Society, vol. 114(493), pages F73-F96, 02.
  16. Ann Harrison, 2007. "Globalization and Poverty," NBER Books, National Bureau of Economic Research, Inc, number harr06-1.
  17. Porto, Guido G., 2006. "Using survey data to assess the distributional effects of trade policy," Journal of International Economics, Elsevier, vol. 70(1), pages 140-160, September.
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  19. Petia Topalova, 2007. "Trade Liberalization, Poverty and Inequality: Evidence from Indian Districts," NBER Chapters, in: Globalization and Poverty, pages 291-336 National Bureau of Economic Research, Inc.
  20. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  21. Gonzaga, Gustavo & Menezes Filho, Naercio & Terra, Cristina, 2006. "Trade liberalization and the evolution of skill earnings differentials in Brazil," Journal of International Economics, Elsevier, vol. 68(2), pages 345-367, March.
  22. Ferreira, Francisco H. G. & Leite, Phillippe G. & Litchfield, Julie A., 2006. "The rise and fall of Brazilian inequality, 1981-2004," Policy Research Working Paper Series 3867, The World Bank.
  23. Donald J. Robbins, 1996. "Evidence on Trade and Wages in the Developing World," OECD Development Centre Working Papers 119, OECD Publishing.
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  25. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," NBER Working Papers 12885, National Bureau of Economic Research, Inc.
  26. Brian, McCaig, 2011. "Exporting out of poverty: Provincial poverty in Vietnam and U.S. market access," Journal of International Economics, Elsevier, vol. 85(1), pages 102-113, September.
  27. Porto, Guido G., 2003. "Trade reforms, market access, and poverty in Argentina," Policy Research Working Paper Series 3135, The World Bank.
  28. Nicita, Alessandro, 2004. "Who benefited from trade liberalization in Mexico? Measuring the effects on household welfare," Policy Research Working Paper Series 3265, The World Bank.
  29. Fiess, Norbert M. & Verner, Dorte, 2003. "Migration and human capital in Brazil during the 1990s," Policy Research Working Paper Series 3093, The World Bank.
  30. Marcelo de Paiva Abreu, 2004. "Trade Liberalization and the Political Economy of Protection in Brazil since 1987," IDB Publications (Working Papers) 9376, Inter-American Development Bank.
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