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The Distributional and Employment Consequences of Export Promotion and Import Substitution in Brazil

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  • Benedict J. Clements
  • Kwan S. Kim

Abstract

This paper assesses the impact of the alternative foreign trade strategies of export promotion and import substitution on employment and income distribution in Brazil. The impact of the expansion of nontraded goods production is also examined for purposes of comparison. Using a modified input-output technique, the authors' results reveal that export promotion generates more employment than import substitution and nontraded goods production. The size distribution of income under export promotion is more equal than under import substitution or nontraded goods production, but only slightly more so. Hence, export promotion cannot be seen as a panacea for Brazil's extreme income inequality.

Suggested Citation

  • Benedict J. Clements & Kwan S. Kim, 1987. "The Distributional and Employment Consequences of Export Promotion and Import Substitution in Brazil," Eastern Economic Journal, Eastern Economic Association, vol. 13(4), pages 435-446, Oct-Dec.
    • Handle: RePEc:eej:eeconj:v:13:y:1987:i:4:p:435-446
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume13/V13N4P435_446.pdf
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    References listed on IDEAS

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    1. Kim, Kwan S. & Turrubiate, Gerardo, 1984. "Structures of foreign trade and income distribution : The case of Mexico," Journal of Development Economics, Elsevier, vol. 16(3), pages 263-278, December.
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